Hygrovest Ltd (ASX:HGV, OTC:MMJJF)’s net asset value (before provision for deferred tax) per share rose about 5% during June after completing the buy-back of unmarketable share parcels.
However, the gain was largely offset by the net decline in HGV's investment portfolio.
On 28 April 2023, HGV announced details of an off-market share buy-back facility to buy-back all the shares held by shareholders who held unmarketable parcels of shares.
In accordance with the terms of the buy-back facility, eligible shareholders had until 5.00pm (Perth time) on 16 June 2023 to opt-out of the buy-back facility or increase their shareholding to more than a marketable parcel.
Eligible shareholders that did not exercise either of these options by the closing time had their HGV shares bought back at $0.052 per share.
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The benefits of the buy-back to HGV included the cancellation of HGV shares that are trading at a level below that which the board believes to be their intrinsic value, and a reduction in HGV’s operating costs.
The buy-back was funded from HGV’s existing cash reserves.
A total of 19,643,383 HGV shares were acquired under the buy-back facility for a total consideration of $1,021,464.
As a result, HGV now has 210,310,602 ordinary shares on issue.
Investment manager tender update
On 24 February 2023, HGV started an invitational tender to appoint a new investment manager from 1 July 2023, upon the current investment management agreement with Parallax Ventures Inc. expiring.
Following interest from a number of parties, HGV currently expects to finalise its appointment of a new investment manager by early August 2023.
HGV is ensuring that its investment portfolio will in the interim be managed appropriately.