Ergis S.A. (WSE:EGS) commences share repurchases on May 17, 2016 under the program mandated by the shareholders in the Extraordinary General Meeting held on February 22, 2016. As per the mandate, the company is authorized to repurchase its shares with total par value not exceeding 5% of the share capital. The price at which the shares will be repurchased shall not be lower than PLN 0.60 per share and shall not be more than PLN 10 per share. The maximum amount allocated for repurchase is PLN 19.72 million. Repurchases will be made on the main market of the Warsaw Stock Exchange. Repurchased shares will be retired thereby increasing the value and reducing the share capital. Repurchases will be made from the reserve capital of the company. The company cannot repurchase on any day more than 25% of the appropriated average daily volume of turnover of shares at Warsaw Stock Exchange in 20 days directly preceding the purchase date. Due to the low liquidity of shares, the company will be able to exceed the specified threshold of 25%, but not exceeding 50%, for which it has to inform the Financial Supervision Commission, the Stock Exchange in Warsaw and make a public disclosure. The share repurchase program is in the interest of both the company and its shareholders, as in the opinion of Supervisory Board and the Management Board the current market valuation of the company's shares is significantly lower than the fair value, and does not reflect its financial results and economic situation. The Management Board is authorized to make any decisions and undertake any measures necessary to repurchase shares and cancel or terminate the program at any time. The share repurchase program is valid until December 31, 2018. On May 16, 2016, the Management Board decided to commence the repurchase program on May 17, 2016.