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9 November 2015
On-Market Share Buy-Back
African Energy has today announced plans to undertake an on-market share buy-back of up to 5% of total share capital over the next twelve months, subject to approval by shareholders at the upcoming annual general meeting.
This initiative is undertaken as part of the Company�s ongoing capital management strategy, taking note of the low market capitalization (share price) when compared to the net tangible asset backing of the Company and, in particular, the current cash backing of A$7.6 million. The Board believes the current share price does not adequately reflect the inherent value of the Company�s projects and as such considers instituting a buy-back as a sound use of available capital.
Pursuant to ASX Listing Rules, the prices paid for any shares purchased under the share buy-back will be no more than 5% above the 5-day VWAP of shares. The total number of shares to be purchased by African Energy under the buy-back will depend on market conditions and volumes, but the board has resolved to limit purchases to 31,000,000 shares at a maximum share price of 15 cents and incur no more than A$1,000,000 for on-market share purchases.
Euroz Securities have been appointed to assist with the buy-back.
The buy-back facility will be open for 12 months from 23 November 2015, 14 days after the issue of this notice.
To view today's announcement in full, please click here. |