May 3 2011
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 851,437 of its outstanding income participating securities ("IPSs")(TSX: DR.UN), representing 3% of the number of 28,381,250 IPSs issued and outstanding as of May 2, 2011 (treating the 11,200 separated IPSs as having been recombined for the purpose of this calculation). If the proposed conversion from the Company's IPS units to a traditional common share structure (the "Recapitalization") is successfully completed, the normal course issuer bid would become a bid for the common shares ("Common Shares") issued in exchange for IPSs under the Recapitalization. The Company may purchase the IPSs (or Common Shares) at prevailing market prices during the period from May 4, 2011 to May 3, 2012. 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 13,825 IPSs (or, post-Recapitalization, Common Shares) on any trading day. 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 107,200 IPSs at a weighted average price of $9.24.
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.
Source:
MEDICAL FACILITIES CORPORATION