I hope I’m wrong but maybe the announcement of the share buy back was a cynical move to increase the DRP issue price. The DRP pricing period ran from 11 to 15th October and D2O announced the share buy back late morning on 13 October. This had the effect of pushing up the market price on the 13th, 14th and 15th of October whereas this week the share price has fallen away.
To date there has been no announcement that D2O has actually purchased any shares under the announced buy back.
At least the 3% discount to the 5 day VWAP provides some compensation, but I’ll be interested to see where the DRP issue price lands relative to the recent share price range (excluding the 3 days of elevated share price last week),
Based on the Quarterly Cash report, it’s not like D2O has a lot of headway under its loan facility to fund a share buy back.
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