Medical Facilities Corporation Announces Approval of Normal Course Issuer Bid
for Debentures and Automatic Securities Purchase Plan
TORONTO, Nov. 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 $3,440,000 aggregate principal amount of its outstanding 7.50% convertible secured debentures (the "Debentures") (TSX: DR.DB), representing 8% of its $43,000,000 aggregate principal amount of the Debentures outstanding as of November 15, 2010. The Company may purchase the Debentures at prevailing market prices during the period from November 24, 2010 to November 23, 2011. 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 $4,300 aggregate principal amount of Debentures on any trading day to and including November 23, 2011. All Debentures purchased by Medical Facilities under the normal course issuer bid will be cancelled.
Medical Facilities believes that from time to time, the market price of its Debentures may not reflect their underlying value and that the purchase of its Debentures may represent an appropriate and desirable use of Company funds. Medical Facilities intends to fund the purchases out of available cash.
The Company has also implemented an automatic securities purchase plan (the "Plan") in connection with its normal course issuer bid for its Debentures. Pursuant to the Plan, the Company may purchase Debentures under its normal course issuer bid during such times that are considered, under the insider trading and disclosure policy of Medical Facilities, outside of a permitted trading window or during a designated blackout period. The Plan is effective as of today and terminates with the normal course issuer bid for the Debentures. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been approved by the Toronto Stock Exchange.
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 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 forwardlooking 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.
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For further information:
Michael Salter Chief Financial Officer Medical Facilities Corp. (416) 848-7980 or 1-877-402-7162 |
Salvador Diaz Investor Relations The Equicom Group Inc. (416) 815-0700 or 1-800-385-5451 ext. 242 sdiaz@equicomgroup.com |
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