Sylvania Platinum announces $10m share buyback programme

2nd May 2023 11:51

(Sharecast News) - Sylvania Platinum announced its intention to conduct a share buyback programme on Tuesday, aiming to purchase ordinary shares on the market up to a maximum consideration of $10m.

The AIM-traded firm said the buyback would be carried out under the authority of its bye laws, with the intention of reducing the company's share capital.

All shares purchased during the programme would be cancelled.

The company said it had appointed Liberum Capital to execute the buyback programme, with the authority to purchase shares with absolute discretion during any closed period.

It said the buyback would be funded from its current cash balances.

"Given the limited liquidity in the ordinary shares, the company may not be able to benefit from the exemption whereby it would not purchase shares at a price higher than the higher of the price of the last independent trade and the highest current independent purchase bid on the trading venue where the purchase is carried out," the board cautioned in its announcement.

"Furthermore, a buyback of ordinary shares on any trading day is likely to represent a significant proportion, or possibly all, of the daily trading volume in the ordinary shares on the London Stock Exchange."

Sylvania warned that it was also likely to exceed the 25% limit of the average daily trading volume as laid down in the regulations.

"There is no guarantee that the share buyback will be implemented in full or that any repurchases will be made."

Sylvania said the buyback would be effective from Tuesday, and would expire on the first of either 7 September, or on attaining the maximum consideration of $10m.

At 1131 BST, shares in Sylvania Platinum were up 2.73% at 94p.

Reporting by Josh White for Sharecast.com.