Asset Resolution Limited (NSX:ASS) commences share repurchases on February 22, 2017 under the program mandated by the shareholders in the Annual General Meeting held on November 26, 2016. As per the mandate, the company is authorized to repurchase up to 981,088 shares, representing 20% of its shares in issue. The shares will be repurchased at a price to be determined by the market. The company will repurchase its shares through an on-market buyback offer in the ordinary course of trading in the company’s shares. The repurchased shares will be cancelled. The repurchases will be funded from the company’s existing cash reserves or via current debt facilities if within the debt capacity of the company. The shares will be repurchased for the company’s capital management purposes which focus on managing the company’s capital so as to achieve the most efficient capital structure and optimize value for shareholders. The repurchases program will increase the proportionate interest of the remaining shareholders and a corresponding reduction in the share capital. The company will not repurchase shares if to do so would materially prejudice its ability to pay its creditors, prevent the company from discharging its indebtedness or from conducting and growing its business. The Board of Directors will only repurchase shares on the basis that the company will remain well capitalized following the completion of the purchase and to do so will not adversely impact the financial position of the company. The actual number of shares to be bought back will be assessed by the Board of Directors on an ongoing basis, having regard to, among other things, the company’s net debt, capital surplus and cash flows, as well as broader market conditions and alternative investment opportunities. The company has received the approval for the program in its Annual General Meeting on November 26, 2016. The repurchases will be made over time, depending on market conditions and prices. The repurchases will be in accordance with the Corporations Act and the Listing Rules. The Directors and their associates do not intend to participate in the repurchase program. The company therefore believes that such a flexibility to the Board of Directors to repurchase shares will support its goals of achieving the most efficient capital structure possible, optimizing value for shareholders where the shares are trading below their NTA1 value, and to facilitate a more active market in the company’s shares, enabling those current shareholders who wish to dispose of their shares on-market a greater opportunity to do so at a fair price. The company reserves the right to suspend or terminate the program at any time. The share repurchase program is valid over the next 12 months, until November 25, 2017. On February 21, 2017, the company commenced the repurchase program.