Sygnus Credit Investments (SCI) has bought back from some of its shareholders close to three million ordinary shares in its share buy-back programme.

The shares amounting to US$136,525 or $7,772,274 were purchased between June 13 and June 19. Altogether, the value of the shares buy-back was approximately US$635,000.

The purpose of the shares buy-back is to enhance shareholder value with SCI’s management agreeing to purchase up to US$9 million of JMD and USD ordinary shares.

The source of funding of the purchase is the company’s cash flows and the method of effecting the purchase is buying the shares on the open market via SCI’s stock brokers.

A buyback is a repurchase of outstanding stock shares by a company to reduce the number of shares on the market and increase the value of the remaining shares. Buybacks benefit all shareholders to the extent that when stock is repurchased, shareholders get market value plus a premium from the company.

If the stock price rises before the repurchase, those selling their shares in the open market will see a tangible benefit.