new lows, page-5

firsova, I was wondering about the PXUPA on-market buyback. I think I had it confused with an off-market buyback. Anyhoo, the company has said it will be "immaterial" or some such word, to do the buyback, and indeed it probably will be: with a current PXUPA market cap of $23,398,500, if they buy back- on market- say 10% of hybrids, it will cost them about $2.33m. If it is a usual on-market buyback, there are proscriptions/rules around VWAP and how much can be paid, and it's usually only around 5% up or down on market price.

I see there as being two forces now with a real interest in the PXUPA price: holders who want the VWAP to be *up* for the buyback, and Paperlinx, who would want the price to be low, so they don't have to pay out too many bucks.

It's a shabby "gift" to PXUPA holders. An off-market buy back could have been better- an offer at some kind of premium, maybe, and PXUPA holders just sign a form saying how many PXUPA's they have and they could be sent a cheque for say 10%. A redemption for 10% would have been the ideal. Now, it looks likr it will just be a buying column that looks similar to other buying columns- except it will be PPA buying, and knowing they never have to pay distributions on those bought-back hybrids again. Shame on them.