Ann: Minimum Holding Share Buy Back, page-78

Thank you, papaS, for your detailed question. I will do my best to explain this particular scenario, bearing in mind I have several others.

This is like question time in parliament; I can answerer it anyway I like,

This particular scenario is based purely on the following from the Constitution, something which you are all intimately familiar with.



While there is no specific notice period legislated, it has to be "reasonable". A month is considered "reasonable", but Six Weeks seems to be the norm, and it what STX has chosen.

They can fiddle with certain parameters within this period but cannot shorten it.

I will just list my thoughts and observations.

1. The SP could go either way within this period. It is doubtful as to whether or not any holder would take up this offer before week six. STX won't have a clear idea on their interpretation of the success or failure until then.

2. Some might sell on market during this period, depending on the price. Good on them.

3. If this Buy-back is highly successful, it will be an indication that the SP has been languishing around 24 cents for some six weeks after the announcement.

4. It would appear that this is the BOD's expectation. Hardly inspiring. No upward surprises expected. Alas, IMO.

5. As I have said in earlier posts, only the casual SH would have held an unmarketable parcel when the SP was in the 40-50 cent range.

6. I think that it would be in SH's interest, if it failed spectacularly, due to SP increase, and for your sake I hope it fails.

Well, papaS, what say you on this scenario, and have I been too cavalier in my assessment of the BOD's expectation?