6 Aug 2019 07:00
6 August 2019
Life Settlement Assets PLC (the "Company" or "LSA")
LEI: 2138003OL2VBXWG1BZ27
Share Buyback Programme
Further to the Company's announcements of 14 May 2019 and 13 June 2019, the Company announces the launch of a buyback programme in respect of up to a maximum of US$0.5 million for D Ordinary Shares and up to a maximum of US$0.5 million for E Ordinary Shares ("Buyback Programme").
The Buyback Programme will commence with effect from 12 August 2019 and shall continue until the earlier of the maximum amounts being repurchased and 24 September 2019. The maximum amount of money allocated for the Buyback Programme is US$0.5 million for D Ordinary Shares and US$0.5 million for E Ordinary Shares.
The Company has engaged Shore Capital Stockbrokers ("Shore"), the Company's broker, to conduct the Buyback Programme, which will be independently managed by Shore, the Company's broker, which will make trading decisions independently and without the influence of the Company.
Pursuant to, and during the term of, the Buyback Programme, the Company may purchase D Ordinary Shares and E Ordinary Shares provided that:
1) the maximum price which may be paid for D Ordinary Shares or E Ordinary Shares on the Exchange is the higher of:
a. an amount equal to 5% above the average of the middle market quotations for an Ordinary Share of the relevant class as derived from the Daily Official List of the London Stock Exchange plc for the five business days immediately preceding the day on which that Ordinary Share is contracted to be purchased; and
b. an amount equal to the higher of the price of the last independent trade and the highest current independent bid on the trading venues where the purchase is carried out at the relevant time.
2) any purchase of Ordinary Shares will be made in the market for cash at prices below the latest estimated monthly net asset value per share of the relevant class (as determined by the Directors).
D Ordinary Shares and E Ordinary Shares purchased under the Buyback Programme will be cancelled and consequently will reduce the number of Ordinary Shares of that class. As Ordinary Shares will not be acquired above the prevailing net asset value per share, the Buyback Programme is expected to enhance net asset value per D Ordinary Share and E Ordinary Share.
Due to the limited liquidity in trading of the Company's D Ordinary Shares and E Ordinary Shares, purchases under the Buyback Programme on any trading day are likely to represent a significant proportion of the daily trading volume in the shares of that class (and are likely to exceed the 25% threshold of the average daily trading volume in both the month preceding this announcement and the 20 trading days preceding the date of the purchase as is set out in the Commission Delegated Regulation (EU) 2016/1052) and, as such, the Company would be deviating from the safe harbour set out in Article 5(1) of the Market Abuse Regulation (Regulation 596/2014).
The Company will announce any market repurchase no later than 7.30am on the business day following the calendar on which the repurchase occurred.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.The Company confirms that it currently has no other unpublished price sensitive information other than what has been disclosed above.
Enquiries:
Acheron Capital Limited (Investment Manager)
Jean-Michel Paul
020 7258 5990
Shore Capital (Financial Adviser and Broker)
Robert Finlay
020 7408 4080
George Bayer / Kerry Higgins
Maitland Administration Services Limited
Company Secretary
Tel: 01245 209780
TB Cardew (Financial PR)
Shan Shan Willenbrock
020 7930 0777
Notes to Editors
LSA is a closed-ended investment company which manages portfolios of whole and fractional interests in life settlement policies issued by life insurance companies operating predominantly in the United States. The life settlement market enables individuals to sell their life insurance policies to investors at a higher cash value than they would otherwise receive from insurance companies (if they were cancelled or surrendered at the date of sale). The Company aims to manage portfolios of life settlement products so that the realised value of the policy maturities exceeds the aggregate cost of acquiring the policies, ongoing premiums, management fees and other operational costs. LSA is listed on the Specialist Fund Segment of the Main Market of the London Stock Exchange.