Ann: Capitol Health announces on-market share buy-back, page-2

Capitol Health announces on-market share buy-back
Capitol Health Limited (ASX: CAJ) (Capitol Health or Company) is pleased to announce the introduction of an on-market share buy-back of up to 52,300,000 ordinary shares. These shares represent approximately 6.5% of the current shares on issue and, based on the closing price on 17 August 2017 of $0.275, the cash outlay before costs (if all shares are acquired) would be approximately $14.38 million.
The announcement of this on-market buy-back follows the statement regarding capital management made with the Company’s announcement of the sale of its NSW assets on 14 June 2016.
The Board considers that, once the sale of the NSW assets to I-Med Radiology Network completes, Capitol Health will have capital, net of financial debt, in excess of the amount that it can realistically invest within the next 12 months. Completion is expected to occur on 31 August 2017.
The buy-back gives Capitol Health flexibility to purchase its ordinary shares in circumstances where it is beneficial to the efficient capital management of the Company. The buy-back is therefore dependent on market conditions, volumes, price and other relevant conditions from time to time. The buy-back may also enable shareholders to take advantage of the expected additional liquidity in the Company’s shares.
The buy-back is limited to approximately 6.5% of the Company’s existing issued shares and may take place anytime in the 12 month period from 4 September 2017 to 4 September 2018 unless terminated earlier. Details of the on-market buy-back are contained in the following Appendix 3C.
Capitol Health may also seek shareholder approval at the forthcoming Annual General Meeting to buy-back more shares than the approximate 52,300,000 shares it is currently permitted to buy-back.
Capitol Health has appointed Taylor Collison to undertake the on-market buy-back.