TORONTO, May 14, 2018
/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 619,665 of its outstanding
common shares ("Common Shares"), representing 2% of the 30,983,257
Common Shares issued and outstanding as of May 2, 2018.
The Company may purchase the Common Shares at prevailing market
prices during the period from May 16, 2018 to
May 15, 2019 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 40,358 Common Shares on any trading day, representing
25% of the average daily trading volume of 161,433 Common Shares
for the past six months. All securities purchased by Medical
Facilities under the normal course issuer bid will be cancelled.
The Company repurchased 95,600 Common Shares through the facilities
of the TSX and alternative Canadian trading systems at an average
price of Cdn$14.71 per Common Share
under its prior normal course issuer bid for up to 620,918 Common
Shares, which commenced on May 16, 2017 and expires on
May 15, 2018.
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, in
partnership with physicians, owns surgical facilities in
the United States. Medical
Facilities' portfolio includes controlling interest in five
specialty surgical hospitals located in Arkansas, Indiana, Oklahoma, and South
Dakota, and an ambulatory surgery center located in
California. In addition, through a
partnership with NueHealth LLC, Medical Facilities owns controlling
interest in seven ambulatory surgery centers located in
Arkansas, Michigan, Missouri, Nebraska, Ohio, Oregon,
and Pennsylvania. The specialty
surgical 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 centers specialize 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