Aim-listed Sylvania Platinum has announced a programme to buy back up to $8.5-million of its ordinary shares in issue.
The purpose of the share buyback is to reduce the share capital of the company.
Sylvania said on May 9 that it had instructed financial services company Liberum Capital to execute the share buyback, which would be funded from Sylvania's current cash balance.
Given the limited liquidity in the ordinary shares, Sylvania said it may not be able to benefit from the legal exemption whereby the company would not buy 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 was carried out.
Moreover, 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 LSE, which Sylvania believes would be likely to exceed the 25% limit of the average daily trading volume.
“There is no guarantee that the share buyback will be implemented in full or that any repurchases will be made,” the company stated.
The share buyback is effective immediately and will expire on June 30.