Kooth unveils new US contract and share buyback
Kooth
180.00p
12:44 24/12/24
Shares in Kooth jumped on Tuesday after the youth digital mental healthcare company announced a new $1.5m pilot contract in the US and a £1.5m share buyback plan.
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The new contract will see Kooth provide mental health support via its Soluna platform to school districts within New Jersey, reaching 50,000 students aged 13 to 18, for an initial period of one year from mid-January 2025.
Eligible students will be able to access Kooth's platform for confidential counselling and coaching, seven days a week between the hours of 14:00 and 21:00.
Kooth said it continues to be in discussions regarding a second pilot contract in the US, which are expected to be concluded in the first quarter of 2025.
Separately, the company said it was buying back £1.5m of shares to raise the number of shares held in treasury for use in meeting future obligations arising from its employee incentive schemes.
"The board is of the view that the shares significantly undervalue the group and therefore believe that utilising the company's strong balance sheet to minimise dilution arising from share options is in the best interest of all shareholders," Kooth said/
The stock was up 9.4% at 177.73p by 0848 GMT.