TORONTO, May 11, 2016 /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 ("NCIB") for up to 620,919 of its outstanding common shares ("Common Shares"), representing 2% of the number of 31,045,945 Common Shares issued and outstanding as of May 1, 2016. The Company may purchase the Common Shares at prevailing market prices during the period from May 16, 2016 to May 15, 2017 through the facilities of the Toronto Stock Exchange and alternative Canadian trading systems. 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 17,272 Common Shares on any trading day, representing 25% of the average daily trading volume of 69,091 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 356,000 Common Shares at a weighted average price of $14.70.
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.
In connection with the NCIB, the Company has entered into an automatic securities purchase plan with National Bank Financial Inc., its broker of record for the NCIB, in order to facilitate repurchases of Common Shares under the NCIB. The automatic plan contains strict parameters regarding how Common Shares may be repurchased during times when the Company would ordinarily not be permitted to purchase Common Shares due to regulatory restrictions or self-imposed blackout periods, including the period from the eleventh business day following the end of a fiscal quarter until the disclosure of the applicable quarterly or annual financial results and prior to the disclosure of certain material changes.
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.
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.
SOURCE Medical Facilities Corporation
For further information: Michael Salter, Chief Financial Officer, Medical Facilities Corporation, 416.848.7380 or 1.877.402.7162, [email protected]; Craig MacPhail, Investor Relations, NATIONAL Equicom, (416) 586-1938, [email protected]