Jumbo Interactive has 1,399 shareholders of which 499 holders have an unmarketable parcel (ie. a value less than $500) as at the close of trading on 21 October 2011. The total number of shares held by those shareholders with an unmarketable parcel of shares is 416,539 (out of total issued shares of 39,695,726).
The Company is offering to buy-back all of these shares at a price of 27.8 cents per share, being the Volume Weighted Average Price for the 10 day trading period from 10 October 2011 to 21 October 2011. These shares will be immediately cancelled once transferred to the Company in accordance with the Corporations Act 2001.
The Company is offering to buy-back the shares as a convenient and cost effective way for these shareholders to dispose of their shares. It will also reduce the ongoing administrative costs to the Company associated with these small holdings. In accordance with its Constitution and the Corporations Act 2001, the Company does not require shareholder approval for the buy-back of these shares.
Should all the shares subject to the Offer be bought back, the total consideration paid by the Company will be $115,798. The Company will also bear all costs and expenses associated with the buy-back.
The letter from the Company containing the Offer is attached.
If applicable shareholders want to retain their shareholding, they must complete and return the Continuing Member Notice, which accompanies the Offer, to the share registry before the closing date for the Offer at 5:00pm AEST on 9 December 2011.
It is anticipated that shareholders who do not elect to retain their shares will receive payment of funds by 23 December 2011.
For further information:
CEO and Executive Director
Ph: 07 3831 3705