Tekla Life Sciences Investors Announce Renewal of Share Repurchase Program

Rhea-AI Summary

Tekla Life Sciences Investors announced a renewal of its share repurchase program, allowing the purchase of up to 12% of outstanding common shares until July 14, 2022. This decision aims to enhance shareholder value and reduce the discount between market price and net asset value. The timing and amount of repurchases will be at the discretion of Tekla Capital Management LLC, with no guarantee of specific purchase levels or market price increase. The Fund focuses on investments in the life sciences sector, listed under NYSE symbol HQL.

Positive

• Renewing the share repurchase program indicates a commitment to enhancing shareholder value.
• The repurchase may reduce the discount between market price and net asset value, potentially boosting investor confidence and trading liquidity.

Negative

• There is no guarantee that the repurchase will increase the market price of shares or net asset value.
• Repurchases might not occur at specific levels, which could lead to uncertainty in investor expectations.

Tekla Life Sciences 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 Life Sciences Investors (NYSE: HQL) is a closed-end fund that invests in companies in the life sciences 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/20210325005919/en/

FAQ

What is the share repurchase program for HQL?

The share repurchase program allows Tekla Life Sciences Investors to buy back up to 12% of its outstanding common shares until July 14, 2022.

What is the purpose of the HQL share repurchase program?

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

Who manages the share repurchase program for HQL?

The repurchase program is managed at the discretion of Tekla Capital Management LLC.

Will the share repurchase guarantee an increase in HQL's stock price?

There is no assurance that the share repurchase will increase the stock price or net asset value.

How can I purchase HQL shares?

Shares of Tekla Life Sciences Investors can be purchased on the New York Stock Exchange through any securities broker.