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Be the first with the news that moves the market- Race Oncology (RAC) has launched an on-market share buyback program to purchase up to four million RAC shares over the next year
- The company is aiming to take advantage of market volatility to buy the shares in periods where the price undervalues the business
- Race plans to purchase shares at a price of no more than 5 per cent above its five-day volume-weighted average share price
- The company said the funds used for the buyback will not impact its clinical and preclinical programs
- Shares in Race Oncology are up 8.88 per cent to $1.84 at 10:16 am AEST.
Race Oncology (RAC) has launched an on-market share buyback program to purchase up to four million RAC shares over the next year.
The company said it was aiming to take advantage of market volatility to buy the shares in periods where the price undervalued the business.
Race CEO Phillip Lynch said he believed the move would unlock maximum shareholder value.
“The board believes Race is currently undervalued due to a range of factors external to the company’s fundamentals,” he said.
He added that the funds used for the buyback would not impact its clinical and preclinical programs, which remain fully funded from a share purchase plan completed late last year.
“We believe a share buyback is an appropriate use of capital at this point in time, and that the quantum involved will not compromise pre-clinical and clinical programs as committed under our recent share purchase plan.”
Race plans to purchase shares at a price of no more than 5 per cent above its five-day volume-weighted average share price.
The buyback plan is not subject to shareholder approval.
Shares in Race Oncology were up 8.88 per cent to $1.84 at 10:16 am AEST.
