Reason for buyback

It should appear obvious but some may not be aware.

While the share price is in a discount to the net tangible assets it is like buying dollars for 99 cents or thereabouts.

When the share price rises above nta the share buyback should cease.

The buyback is conta to the longer term objective of increasing the company's capital but it is financially sound in the short term.

Look for a further share issue down the track. It may come in the form of 1 for 1 free options.