The Group remains of the view that the authority to be able to undertake buy-backs of small parcels of ordinary shares of 10p each in the Company (“Ordinary Shares”) is an important stabilising mechanism in times of market or share price volatility. The Group's previous policy was to consider buy-backs when the Company's share price dropped to more than 25% below its published Net Asset Value. Pursuant to a recent decision of the Board of Directors, it has been agreed that this threshold will be amended so that buy-backs can be considered whenever the Company's share price is more than 20% below the Net Asset Value as stated in the Company's most recently published balance sheet.
All other terms of the Share Buy-Back Policy set out in the announcement on 24 July 2017 remain unchanged, and are as follows:
· The buy-backs are to be carried out pursuant to and in accordance with the authority conferred by the Company's shareholders at the Company's annual general meeting held on 19 July 2017 for up to a maximum of 2,922,604 issued Ordinary Shares, during the period commencing 24 July 2017 and ending on the expiry of the Company's existing shareholder authority to purchase the Ordinary Shares (the “Authority”). The maximum amount of money allocated to the share buy-back at this stage is £150,000.
· Pursuant to, and during the term of, the Authority, the Company may purchase Ordinary Shares provided that the maximum purchase price is an amount not higher than: (i) 105 per cent. of the average market value of the Ordinary Shares for the five business days immediately preceding the date on which the Ordinary Shares are purchased; and (ii) that stipulated by the Commission-adopted Regulatory Technical Standards pursuant to article 5 (6) of the Market Abuse Regulation (EU No.596/2014).
· The Company remains committed to its previously stated objective to reduce the share price discount to net asset value and reserves the right to exercise the Authority and effect share buy-backs if, in the opinion of the Company's directors, such action would further enhance shareholder value.
· It is the Company's intention, when the share price drops to more than 20% below its most recently published Net Asset Value, to buy small parcels of Ordinary Shares and place them into Treasury and decide at a later point what treatment to apply to them.
· The Company will announce any market purchase of Ordinary Shares pursuant to the Authority without delay.