An issuer may only purchase shares on GEM, either directly or indirectly, if:—

(1) the shares proposed to be purchased by the issuer are fully-paid up;
(2) the issuer has previously sent to its shareholders an Explanatory Statement complying with the provisions of rule 13.08; and
(3) its shareholders have given a specific approval or a general mandate to its directors to make the purchase(s), by way of an ordinary resolution which complies with rule 13.09 and which has been passed at a general meeting of the issuer duly convened and held;