CLS Holdings PLC Announcement of Share Buy-Back Programme (9905X)
May 12 2016 - 2:00AM
UK Regulatory
TIDMCLI
RNS Number : 9905X
CLS Holdings PLC
12 May 2016
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
12 May 2016
CLS Holdings plc
("CLS" or the "Company")
ANNOUNCEMENT OF SHARE BUY-BACK PROGRAMME
CLS today announces the launch of an ordinary share buy-back
programme (the "Programme") with the objective of reducing the
issued ordinary share capital of the Company to enhance its Net
Asset Value ("NAV") per share. The Company believes the current
share price, which is at a significant discount to its last
reported NAV per share, does not adequately reflect the value of
its property portfolio and development pipeline.
The Programme will commence with effect from today and will end,
unless terminated earlier, on 30 June 2016. The Programme will be
conducted in accordance with the authorisation granted to the
Company by shareholders at the Annual General Meeting ("AGM") held
on 20 April 2016.
CLS has appointed Liberum Capital Limited ("Liberum") to manage
the Programme and has authorised Liberum to effect on-market
purchases of ordinary shares of 25 pence each (the "Ordinary
Shares") on behalf of the Company on the Main Market of the London
Stock Exchange plc (the "Exchange").
Pursuant to, and during the term of, the Programme, Liberum may
purchase Ordinary Shares provided that:
1) the maximum price payable for an Ordinary Share on the
Exchange is an amount equal to the higher of:
a. 105 per cent. of the average market value of the Company's
Ordinary Shares as derived from the London Stock Exchange Daily
Official List for the five business days immediately preceding the
day on which such share is contracted to be purchased; or
b. the higher of the price of the last independent trade and the
highest current bid stipulated by Article 5(1) of the Commission
Regulation (Directive 2003/6/EC) 22 December 2003 implementing the
Market Abuse Directive with regard to exemptions for buy back
programmes and stabilisation of Financial Instruments (No.
2273/2003); and
2) the aggregate number of Ordinary Shares which may be acquired
on behalf of the Company in connection with the Programme shall not
exceed 4,140,618 Ordinary Shares.
Due to the limited liquidity in the Ordinary Shares, a buy-back
of Ordinary Shares pursuant to the Programme on any trading day is
likely to represent a significant proportion of the daily trading
volume in the Ordinary Shares on the Exchange (and is likely to
exceed the 25% and 50% limits of the average daily trading volume
of June 2015 as referred to in the Commission Regulation (EC) No.
2273/2003 on buy-back programmes).
CLS will announce any market repurchase of Ordinary Shares no
later than 7.30 a.m. on the business day following the calendar day
on which the repurchase occurred. To the extent permitted by law,
Ordinary Shares bought back under the Programme will be held as
Treasury Shares.
-ENDS-
Enquiries
David Fuller
Company Secretary
CLS Holdings plc
020 7582 7766
This information is provided by RNS
The company news service from the London Stock Exchange
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