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Tekla Healthcare Investors Announce Renewal of Share Repurchase Program
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
buyback
Rhea-AI Summary
Tekla Healthcare Investors (NYSE: HQH) announced the renewal of its share repurchase program, allowing the purchase of up to 12% of its outstanding common shares over the next year, ending on July 14, 2023. This initiative aims to enhance shareholder value and minimize the market price discount to the fund’s net asset value per share. The timing and amount of repurchases will be at the discretion of Tekla Capital Management LLC. Although the program aims to improve liquidity and net asset value, there is no guarantee that share repurchases will increase market prices.
Positive
Renewed share repurchase program aimed at enhancing shareholder value.
Potential to reduce market price discount to net asset value per share.
Increased liquidity in trading shares is anticipated.
Negative
No assurance that share repurchases will lead to increased market prices.
Market price may not improve relative to net asset value despite repurchases.
BOSTON--(BUSINESS WIRE)--
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, 2022. 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, 2023. 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.
