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Medexus Announces Normal Course Issuer Bid, or NCIB, for Its Convertible Debentures
NCIB will commence on May 15, 2023 and is expected to continue through the debentures' October 20...
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"Medexus Announces Normal Course Issuer Bid, or NCIB, for Its Convertible DebenturesNCIB will commence on May 15, 2023 and is expected to continue through the debentures' October 2023 maturity dateNCIB purchases will deleverage Medexus's balance sheet and lead to lower overall debt levels and reduced future debt service obligations in preparation for the debentures' October 2023 maturity dateToronto, Ontario and Chicago, Illinois--(Newsfile Corp. - May 10, 2023) - Medexus Pharmaceuticals (TSX: MDP) (TSX: MDP.DB) (OTCQX: MEDXF) is pleased to announce that the Toronto Stock Exchange has accepted Medexus's notice of intention to make a normal course issuer bid, or NCIB, for its 6% unsecured convertible debentures due 2023 (TSX: MDP.DB). Under the NCIB, Medexus may purchase for cancellation up to C$4,132,100 principal amount of convertible debentures, representing approximately 10% of the public float as defined under TSX rules. As of May 1, 2023, C$41,546,000 principal amount of convertible debentures were outstanding.\"We believe that purchases of our convertible debentures will allow us to deleverage our balance sheet,\" said Ken d'Entremont, Medexus's Chief Executive Officer. \"This would lead to lower overall debt levels and reduced future debt service obligations, particularly as we approach the October 2023 maturity of the convertible debentures.\"\"We will carefully monitor the market price of the convertible debentures,\" added Marcel Konrad, Medexus's Chief Financial Officer. \"Any purchases we make under this new NCIB will benefit the company and its investors by reducing the principal amount of convertible debentures outstanding at maturity, smoothing out our capital outlays during this period, and seeking to uphold a stable and orderly market for both the convertible debentures and our common shares.\"Purchases under the NCIB may commence on May 15, 2023 and continue through October 16, 2023 or such earlier date as Medexus completes the maximum aggregate purchases permitted under the NCIB. The NCIB will be conducted by means of open market transactions through the facilities of the TSX or alternative Canadian trading systems. From November 1, 2022 to April 30, 2023 the average daily trading volume, or ADTV, of the convertible debentures was C$6,483 principal amount. Accordingly, under TSX rules and policies, purchases un...