Cellnet buys back 15,421 shares

Founder Stephen Harrison resigns, keeps shares.

Cellnet has continued its share buyback, yesterday purchasing 15,421 shares at 30c a share.

The latest round brings to 2.85 million shares the listed distributor of mobile accessories and handsets has acquired since shareholders approved the scheme at last October's annual meeting.

Managing director Stuart Smith said the purchases -- capped at 20 million shares --  were in place "as the Board believed the weakness in the share price, at less than net tangible assets per share, was an opportunity to reduce the number of shares on issue."

"There's still a fair bit of room for continuing to purchase more shares," Smith said.

"Given where the share price is sitting compared to what the company and the directors believe the value of the shares are we decided to reduce the amount of shares on issue by the buyback.

"The remaining value of the shares and the net tangible assets per share - will increase," he said.

Cellnet said in an earlier statement the buyback would not cruel its ability "to grow the business nor fund any potential acquisition [because] the company has $20 million in cash and is debt free".

Separately, Cellnet founder Stephen Harrison will resign as a director from the end of the month to pursue business interests overseas; he remains a shareholder.

"Stephen had been based overseas and could not devote any time to the role and remain on board," Smith said.

"He still retains a share holding and is definitely still a supporter."

Harrison resigned as chief executive officer last year but remained a non-executive director.

Cellnet's share price closed at 30c.