Ann: Capital Management Update, page-2

Let's see if sellers can sell into this. If the price keeps dropping whilst they are buying back - then you're all free to call shenanigans. I think it's a viable alternative to winding up the Fund.

"The L1 Owners1 share purchase program (as detailed in Announcement) commenced last week. However, given the extreme volatility in stock markets, the widening of the discount between the LSF share price on the ASX and the net tangible asset backing per LSF share (NTA) and the general decline in stock prices in recent weeks, the non-executive directors of LSF consider it appropriate to commence the on market share buy-back at this time. This will ensure that all shareholders may benefit from the Company buying back shares at the current lower prices.

As a result of the buy-back commencing, the L1 Owners share purchase program will no longer proceed. During short periods after the full year and half year profit announcements and after the annual general meeting, directors and their associated entities will be permitted to purchase LSF shares (subject to legal and regulatory requirements), at which time the buyback would be temporarily paused.

As stated in the Announcement, while the directors reserve the right to cause LSF to buy-back shares at any time on or after today, the current intention is to do so only if the LSF share price trades at a discount to NTA2 of 10% or more, and otherwise subject to market conditions and regulatory requirements. LSF reserves the right to vary, suspend or terminate the on-market buy-back at any time."