- RAC recently raised capital by selling shares at $3.- RAC has...

- RAC recently raised capital by selling shares at $3.
- RAC has the opportunity to repurchase shares now at almost half that price, presenting an immediate return on that capital of more than 50%.
- This return on capital is immediately passed on to remaining shareholders via a reduction in the SOI (assuming all purchased shares are cancelled), representing up to 2.5% of outstanding RAC shares.
- RAC can do this without compromising its immediate funding needs.
- RAC has significantly de-risked since the capital raise occurred and believes it's shares are mispriced due to external factors only, including market sentiment and constant selling into weakness by a former insider who appears unwilling to engage in an off-market transaction.
- This mispricing has the potential to significantly damage both the short/medium term (e.g. partnership) and long term return (e.g. transaction) to RAC shareholders.
- RAC believes it has several short and medium term value drivers which should positively impact the share-price and allow it to re-raise further capital at a higher share price in the future if required.
- RAC may also have other funding avenues open in the future (e.g. partnerships) as planned programs proceed, negating the need for any further capital raise.
- RAC may not even need to purchase the full amount of shares it has stated. The mere fact that the company has stated it is prepared to back itself here should impact sentiment positively.

To me, this sounds like a prudent use of shareholder funds at this point in time. What specifically do you not like about the idea?