TORONTO, May 10, 2017
/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 620,918 of its
outstanding common shares ("Common Shares"), representing 2% of the
31,045,945 Common Shares issued and outstanding as of May 1, 2017. The Company may purchase the Common
Shares at prevailing market prices during the period from
May 16, 2017 to May 15, 2018 through the facilities of the
Toronto Stock Exchange and/or 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 25,966 Common Shares on any trading day,
representing 25% of the average daily trading volume of 103,866
Common Shares for the past six months. All securities purchased by
Medical Facilities under the normal course issuer bid will be
cancelled. The Company did not repurchase any of its Common Shares
under its prior normal course issuer bid which commenced on
May 16, 2016 and expired on May 15, 2017.
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 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 five specialty surgical hospitals located
in Arkansas, Indiana, Oklahoma and South
Dakota, 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