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Redemption completes last step resulting from the 2018 Plan
of Arrangement
TORONTO, Jan. 4, 2021 /CNW/ - HLS Therapeutics Inc.
("HLS" or the "Company") (TSX: HLS), a specialty pharmaceutical
company focusing on central nervous system and cardiovascular
markets, announces that it intends to redeem the remaining
3,655,036 of the Company's outstanding Class A preferred shares
("Preferred Shares") on January 11,
2021 ("Final Redemption"). The remaining balance in the
escrow account created for this purpose will be used to redeem the
preferred shares at a price of CDN $0.70 per share (the "Redemption Price"),
for a total redemption payment of approximately CDN $2.6 million (the "Aggregate Redemption
Payment").
A notice of Final Redemption will be provided to registered
holders of Preferred Shares in accordance with the rights,
privileges and conditions attached to the Preferred Shares (the
"Share Terms"). HLS expects that the notice will be mailed on or
before January 4, 2021.
Non-registered shareholders (i.e. shareholders that hold their
Preferred Shares through a broker or other intermediary) should
contact their broker or other intermediary for information
regarding the redemption process for Preferred Shares in which they
hold a beneficial interest.
Under the plan of arrangement (the "Arrangement") involving
former HLS Therapeutics Inc. and Automodular Corporation ("AMD")
completed on March 12, 2018, former
shareholders of AMD received common shares of HLS and Preferred
Shares in exchange for their common shares of AMD. The purpose of
the Preferred Shares was to facilitate the distribution to such
shareholders, through one or more redemptions of Preferred Shares,
of the net settlement proceeds from AMD's litigation with General
Motors Company and General Motors of Canada Limited (the "GM
Claim") and certain additional AMD funds (deposited into an escrow
account on closing of the Arrangement) to the extent such funds are
not used by HLS to satisfy legacy AMD claims.
Previously, on May 9, 2018, HLS
announced the redemption of 9,321,491 (71.83%) of the Company's
outstanding Preferred Shares on a pro rata basis (the "Partial
Redemption"). The Aggregate Redemption Payment announced today
represents the net settlement proceeds in respect of the GM Claim
less the Partial Redemption and costs related to satisfying legacy
AMD claims since the Arrangement. The Aggregate Redemption Payment
has been approved for distribution to holders of Preferred Shares
by the Board of Directors of HLS in accordance with the Share
Terms.
The Company's transfer agent and redemption agent is
Computershare Investor Services Inc. Questions regarding the
redemption process may be directed to Computershare at
1-800-564-6253 or by e-mail to
corporateactions@computershare.com.
ABOUT HLS THERAPEUTICS INC.
Formed in 2015, HLS is a specialty pharmaceutical company
focused on the acquisition and commercialization of late-stage
development, commercial stage promoted and established branded
pharmaceutical products in the North American markets. HLS's focus
is on products targeting the central nervous system and
cardiovascular therapeutic areas. HLS's management team is composed
of seasoned pharmaceutical executives with a strong track record of
success in these therapeutic areas and at managing products in each
of these lifecycle stages. For more information, please visit:
www.hlstherapeutics.com
FORWARD LOOKING INFORMATION
This release includes forward-looking statements regarding
HLS and its business. Such statements are based on the current
expectations and views of future events of HLS's management. In
some cases the forward-looking statements can be identified by
words or phrases such as "may", "will", "expect", "plan",
"anticipate", "intend", "potential", "estimate", "believe" or the
negative of these terms, or other similar expressions intended to
identify forward-looking statements, including, among others,
statements with respect to HLS's pursuit of additional product and
pipeline opportunities in certain therapeutic markets, statements
regarding growth opportunities and expectations regarding financial
performance. The forward-looking events and circumstances discussed
in this release may not occur and could differ materially as a
result of known and unknown risk factors and uncertainties
affecting HLS, including risks relating to the specialty
pharmaceutical industry, risks related to the regulatory approval
process, economic factors and many other factors beyond the control
of HLS. Forward-looking statements and information by their nature
are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause HLS's actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. A
discussion of the material risks and assumptions associated with
this release can be found in the Company's Annual Information Form
dated March 18, 2020 and Management's
Discussion and Analysis dated November 4,
2020, both of which have been filed on SEDAR and can be
accessed at www.sedar.com. Accordingly, readers should not place
undue reliance on any forward-looking statements or information.
Except as required by applicable securities laws, forward-looking
statements speak only as of the date on which they are made and HLS
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise.
SOURCE HLS Therapeutics Inc.