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Phoenix Digital Assets PLC (AQSE: PNIX) has announced the commencement of a significant share buyback programme following shareholder approval at the Annual General Meeting (AGM) held on 25 July 2024. The Buyback Programme, authorized to repurchase up to £7,500,000 worth of shares, is designed to return additional surplus capital to shareholders and address residual holdings from the recent oversubscribed tender offer.
Details of the Buyback Programme
The Buyback Programme will be executed with the assistance of Dowgate Capital, which has been appointed as the agent for the programme. The Company plans to fund the buyback using its distributable reserves, initially drawing from its cash reserves or potentially through asset divestments.
The decision to launch the Buyback Programme comes in response to the successful tender offer announced on 14 June 2024, which was oversubscribed. This new programme primarily targets shareholders who participated in the tender offer but still hold residual shares and wish to exit these positions.
The programme authorizes the repurchase of up to 140,000,000 ordinary shares, equivalent to approximately 30.4% of the Company’s issued capital as of 9 August 2024, the most recent practicable date for this announcement. All shares repurchased will be held in treasury by Phoenix Digital Assets.
The Buyback Programme is set to run until 23 July 2025, providing ample time to execute the repurchases under the established terms.
Objectives and Impact
The primary objective of the Buyback Programme is to return surplus capital to shareholders, offering an opportunity for those with residual holdings to exit their share positions. By repurchasing shares and holding them in treasury, Phoenix Digital Assets aims to enhance shareholder value and optimize its capital structure.
