Why would a growth company be buying back its shares?
Should the company not be using that cash to fund growth?

The business has sufficient cash to do this, has a majority shareholder who holds most of the shares and the stock is fairly illiquid on the market.

Would the company be doing this to:

A) It has nothing better to spend its cash on (which I find hard to believe)
B) The majority holder wants to take the company private and feels the current market price of the company is undervalued therefore encourages the company to buy back its own shares?
C) They are expecting a large increase in profits/or a profit and the majority shareholder is putting pressure on the company so it can have all the spoils.

What is everyone's thoughts? I am interested to know why as I have seen it in a few small cap companies lately.
4be