LONDON: Franchise Brands, a multi-brand franchise business, announced that for the next six-month period from 1 January 2021 to 30 June 2021, the Company will continue its discretionary programme to buy ordinary shares of 0.5p each in the Company up to an aggregate value of £200,000.
The Company will use its employee benefit trust (the “EBT”), details of which were announced on 1 July 2020, to purchase Ordinary Shares. The Programme seeks to mitigate the dilutive impact of share option awards and to improve overall shareholder return. The EBT conducts market purchases of Ordinary Shares to satisfy potential future option exercises by employees (but not directors).
During the period 1 July 2020 to 31 December 2020, the EBT purchased 264,848 Ordinary Shares at an average price of 96 pence per share. 109,223 Ordinary Shares have been used to satisfy the exercise of options over Ordinary Shares.
Accordingly, the EBT currently holds 155,625 Ordinary Shares which represents 0.16 per cent. of the Company’s current issued share capital.
The Company and the EBT have entered into arrangements with the Company’s joint broker, Dowgate Capital Limited (Dowgate), to carry out on-market purchases of Ordinary Shares under the Programme, including on a discretionary basis independent of the Company during any prohibited periods of the Company, as determined by the Market Abuse Regulation 596/2014/EU (MAR), which may fall during the period of the Programme.
The Company was granted authority by its shareholders at the Company’s Annual General Meeting (“AGM”) on 28 April 2020 to purchase up to 7,971,076 Ordinary Shares (which represents 8.32 per cent. of the current issued share capital) subject to a maximum price limit, as detailed in the AGM notice. This authority will expire at the end of the next AGM of the Company in 2021 or, if earlier, at the close of business on 28 July 2021.
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