Their problem in keeping up this early momentum this week (with the share price at a 31.5c close on Friday) is this:
4.7 Highest price allowed to be paid by entity on the previous day under listing rule 7.33: AUD 0.3150000
They need "weak hand" holders to keep providing big volumes at these price levels for the moment. If that volume dries up but the price also creeps up, then the buyback pace will need to slow to accommodate the highest allowable price under the cap imposed by Listing Rule 7.33:
Listing Rule 7.33 provides that a listed entity may only buy back securities under an on-market buy-back at a price which is not more than 5% above the volume weighted average market price for securities in that class, calculated over the last 5 days on which sales in the shares were recorded before the day on which the purchase under the buy-back was made.
MGX Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
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