TORONTO, April 22 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Company") (TSX: DR.UN), announced today that the Toronto Stock Exchange has approved its notice of intention to make a normal course issuer bid for up to 1,417,975 of its Income Participating Securities ("IPS units"), or approximately 5% of its 28,359,506 outstanding IPS units as of April 15, 2010. The Company may purchase IPS units at prevailing market prices during the period from April 26, 2010 to April 25, 2011. Purchases will be made at market prices in accordance with the rules and policies of the Toronto Stock Exchange. Daily purchases will be limited to 14,338 IPS units, other than block purchase exceptions. All IPS units purchased by Medical Facilities under the normal course issuer bid will be cancelled.
During the period of April 25, 2009, to April 24, 2010, the Company purchased 48,600 IPS units at a weighted average price of $8.60 per IPS unit under a prior normal course issuer bid, for an aggregate consideration of Cdn$422,610.
Medical Facilities believes that, from time to time, the market price of its IPS units may not reflect their underlying value and that the purchase of its IPS units may represent an appropriate and desirable use of Company funds. Medical Facilities intends to fund the purchases out of available cash.
About Medical Facilities
Medical Facilities owns controlling interests in four specialty surgical hospitals, located in South Dakota and Oklahoma, as well as two ambulatory surgery centers in California. The specialty hospitals perform scheduled surgical, imaging and diagnostic procedures and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery centers specialize in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to holders of its IPS units, of which a portion is interest on subordinated debt and a portion is dividend. For more information, please visit www.medicalfacilitiescorp.ca.
Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE Medical Facilities Corporation
For further information: For further information: Michael Salter, Chief Financial Officer, Medical Facilities Corp., (416) 848-7380 or 1-877-402-7162; Salvador Diaz, Investor Relations, The Equicom Group Inc., (416) 815-0700 ext. 242 or 1-800-385-5451 ext. 242, Email: email@example.com