Medical Facilities Corporation Announces Update to Matters Considered at Annual and Special Meeting

TORONTO, May 2, 2016 /CNW/ - Medical Facilities Corporation (TSX: DR) ("Medical Facilities", "MFC" or the "Corporation") in response to comments received from ISS Proxy Advisory Services ("ISS"), Medical Facilities Corporation ("MFC") wishes to provide notice of two minor changes to the matters to be considered at MFC's annual and special meeting of shareholders to take place on May 12, 2016.

At the meeting it is proposed that MFC's articles be amended to remove the restriction prohibiting any physician licensed to practice in the United States (or any immediate family member thereof) from owning or beneficially holding MFC common shares. MFC has concluded, based on expert, independent advice, that the restriction is no longer necessary and its removal will permit U.S. physicians to acquire MFC shares and, it is expected, expand opportunities for alternative acquisition models.  In response to ISS' comments, at the upcoming meeting the amendment to the articles proposed will also provide for the variation of the quorum requirement for MFC shareholder meetings to require the holders of 25% of MFC's shares to be present in person or by proxy.  This change is not expected to have any effect on MFC or the conduct of its shareholder meetings.

Additionally, the advance notice policy to be considered at the shareholder meeting will be in the form initially proposed, with one minor change.  The change is the deletion of the provision giving MFC's board discretion to determine that, in addition to the information specifically required about nominees to the board under the terms of the policy, additional information may reasonably be required by the company to determine the eligibility of the proposed nominee as an independent director or that could be material to a reasonable shareholder's understanding of the independence and/or qualifications of such nominee.  This change is not expected to have any effect to the administration, operation or effectiveness of the proposed advance notice policy.

About Medical Facilities

Medical Facilities owns controlling interests in four specialty surgical hospitals located in South Dakota, Arkansas and Oklahoma, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. In addition, Medical Facilities owns controlling interest in a diversified healthcare service company located in Oklahoma City that provides third-party business solutions to healthcare entities such as physician practices, facilities, and insurance companies. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. For more information, please visit www.medicalfacilitiescorp.ca.

SOURCE Medical Facilities Corporation

For further information: Michael Salter, Chief Financial Officer, Medical Facilities Corp., (416) 848-7380 or 1-877-402-7162, investors@medicalfc.com; Craig MacPhail, Investor Relations, 416.586-1938, cmacphail@national.ca


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