Tekla Healthcare Investors Announce Renewal of Share Repurchase Program

Rhea-AI Summary

Tekla Healthcare Investors (NYSE: HQH) announced a renewal of its share repurchase program, allowing the Fund to buy back up to 12% of its outstanding shares until July 14, 2022. This decision follows a review aimed at enhancing shareholder value and reducing the market price discount relative to the Fund’s net asset value. While the timing and amount of repurchases are at the discretion of Tekla Capital Management LLC, there is no guarantee that the repurchase will impact share prices positively.

Positive

• Renewal of share repurchase program aimed at enhancing shareholder value.
• Potential reduction of the discount between market price and net asset value per share.

Negative

• No assurance that share repurchases will increase share prices or net asset value.
• Repurchase activity lacks specific timing and amount guarantees.

Tekla Healthcare Investors (the “Fund”) announced today that its Board of Trustees authorized a renewal of its share repurchase program. The current share repurchase program allows the Fund to purchase in the open market up to 12% of its outstanding common shares for a one-year period ending July 14, 2021. The renewal will allow the Fund to purchase in the open market up to 12% of its outstanding common shares for a one-year period ending July 14, 2022. The Board authorized the share repurchase program as a result of its periodic review of the options available to enhance shareholder value and potentially reduce the discount between the market price of the Fund’s shares and the net asset value per share. The share repurchase program is intended to increase the Fund’s net asset value per share and could also have the benefit of providing additional liquidity in the trading of shares.

The amount and timing of repurchases will be at the discretion of Tekla Capital Management LLC, the investment adviser to the Fund. There is no assurance that the Fund will purchase shares at any specific discount levels or in any specific amounts or on any specific date. The Fund’s repurchase activity will be disclosed in its shareholder report for the relevant fiscal period. There is no assurance that the market price of the Fund’s shares, either absolute or relative to net asset value, will increase as a result of any share repurchases. The Board will monitor the effect of the share repurchase program on the Fund’s market prices and net asset value per share, expense ratio and investment strategy over time.

Tekla Healthcare Investors (NYSE: HQH) is a closed-end fund that invests in companies in the healthcare industry. Tekla Capital Management LLC, based in Boston, serves as investment adviser to the Fund. Shares of the Fund can be purchased on the New York Stock Exchange through any securities broker.

For additional information, please consult www.teklacap.com or call (877) 855-3434.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210325005920/en/

FAQ

What is the purpose of the share repurchase program for HQH?

The share repurchase program aims to enhance shareholder value and reduce the discount between the market price of HQH shares and their net asset value.

When does the renewed share repurchase program for HQH end?

The renewed share repurchase program will end on July 14, 2022.

How much of HQH's outstanding shares can be repurchased under the new program?

Under the renewed program, Tekla Healthcare Investors can repurchase up to 12% of its outstanding common shares.

Who manages the share repurchase program for HQH?

The share repurchase program is managed by Tekla Capital Management LLC, the investment adviser to the Fund.

Will the repurchase of HQH shares guarantee an increase in share value?

There is no assurance that the repurchase of HQH shares will lead to an increase in share prices or net asset value.