EBT share purchase programme update
Franchise Brands PLC announced an update to its Employee Benefit Trust (EBT) share purchase program, which originally recommenced on 15 October 2024 with an aggregate value of £5 million, of which £1.4 million has been funded to date. The EBT currently holds 1.5 million Ordinary Shares, representing 0.77% of the company's issued share capital. Due to the Board's belief that the current share price undervalues the Group, it has decided to further fund the EBT to purchase additional shares up to £1 million as part of the initial £5 million total. The company acknowledges that any share purchase may exceed 25% of the average daily trading volume.
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On 15 October 2024, the Company announced the re-commencement of the Employee Benefit Trust ("EBT") share purchase programme up to an aggregate value of £5m. Since then the Company has carried out a regular and consistent programme, with £1.4m funded to date. The programme seeks to mitigate the dilutive impact of share option awards and to improve overall shareholder return.
The EBT currently holds 1.5m Ordinary Shares which represents 0.77 per cent. of the Company's current issued share capital.
Anomalies in the share price present opportunities for the Board to act in the interests of all shareholders to fund the EBT to purchase shares. Given that the Board believes the current share price significantly undervalues the Group, it has decided to fund the EBT to purchase additional shares to an aggregate value of £1m as part of the £5m total.
Due to the limited liquidity in the issued Ordinary Shares, any share purchase of Ordinary Shares pursuant to the authority on any trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and may exceed 25 per cent. of the average daily trading volume, being the limit laid down in Article 5(1) of Regulation (EU) No 596/2014 (as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018) and the Commission Delegated Regulation (EU) 2016/1052 (as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018) and, accordingly, the Company will not benefit from the exemption contained in that Article.
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