globe to undertake share buy back

good move..


Globe to Undertake Share Buy Back

Globe Metals & Mining Limited (“Globe” or “the Company”; ASX: GBE) is pleased to advise that, subject to obtaining various regulatory approvals, it will undertake an on-market buy back of up to approximately 5% of its issued capital, at a price of no more than $0.23 per share.
Globe’s Managing Director, Mr. Mark Sumich, commented “Globe’s current share price does not reflect its intrinsic value, let alone its cash backing. Accordingly, given our strong cash position and the relatively small amount of cash required to undertake the buy back, the Board considers this to be a very appropriate use of our funds.”
Comments:
• Buy back cannot commence until all regulatory approvals obtained.
• Globe to have the discretion, not the obligation, to buy back its shares at any given time.
• Foreign Investment Review Board (FIRB) approval required, as the buy back will result in a small increase in ECE’s shareholding in Globe.
• ASIC/ASX – Following FIRB approval being granted, Globe will lodge ASIC Form 281 and Appendix 3C with the ASX, detailing all relevant information required by both bodies. Fourteen days after lodgement of these documents, Globe will be able to commence buying shares on market. On any given day where shares are bought under the Buy Back, an Appendix 3E will be lodged with the ASX the following business day before the commencement of trading.
Highlights
•On-market buy back of up to 10,080, 674 shares (approx. 5% of issued capital)
•Up to a maximum price of $0.23 per share
•Subject to approval of ASIC, ASX and FIRB; shareholder approval not required
•$39.2 million cash at bank (@ Dec. 2011) – equates