TORONTO, May 11, 2012 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Company") (TSX: DR), announced today that the Toronto Stock Exchange has approved its notice of intention to make a normal course issuer bid for up to 283,668 of its outstanding common shares ("Common Shares"), representing 1% of the number of 28,366,878 Common Shares issued and outstanding as of May 8, 2012. The Company may purchase the Common Shares at prevailing market prices during the period from May 15, 2012 to May 14, 2013 through the facilities of the Toronto Stock Exchange. Purchases will be made at market prices in accordance with the rules and policies of the Toronto Stock Exchange. Subject to the Toronto Stock Exchange's block purchase exceptions, daily purchases will be limited to 8,458 Common Shares on any trading day, representing 25% of the average daily trading volume of 33,833 Common Shares for the past six months. All securities purchased by Medical Facilities under the normal course issuer bid will be cancelled. In the past 12 months, the Company has repurchased an aggregate of 136,300 Common Shares and, prior to the reorganization of the Company as of June 1, 2012 pursuant to which IPSs were exchanged for Common Shares on a one-for-one basis, 12,600 IPSs, at a weighted average price of $10.13.
Medical Facilities believes that from time to time, the market price of its publicly-traded securities may not reflect their underlying value and that the purchase of its securities 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 an ambulatory surgery center 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 center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. Medical Facilities pays out a majority of its free cash flows from operations to holders of its Common Shares in the form of a monthly 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 and include statements about the Company's normal course issuer bid. 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.
For further information:
Chief Financial Officer
Medical Facilities Corp.
(416) 848-7380 or 1-877-402-7162
(416) 815-0700 ext. 228 or 1-800-385-5451 ext.242