Quipt Home Medical Corp. Announces Filing of Preliminary Base Shelf Prospectus to Replace Recently Expired Base Shelf Prospectus
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Insights
The filing of a new preliminary short form base shelf prospectus by Quipt Home Medical Corp. represents a strategic maneuver to enhance financial flexibility. The potential to raise up to C$300,000,000 through various securities underscores a proactive approach to capital management. This move allows the company to quickly mobilize funds for strategic acquisitions or to bolster operational liquidity, which is particularly vital in the dynamic healthcare sector where capital-intensive investments are common. The increase from the previous C$200,000,000 capacity signals an anticipation of larger-scale financial activities, possibly indicative of expansion or significant corporate developments.
Investors should note the shelf prospectus's 25-month validity, providing a prolonged window for capital raising efforts. The timing and amount of any offerings will be contingent on market conditions and the company's financial needs, introducing a level of uncertainty. However, this approach provides Quipt with the agility to capitalize on favorable market conditions to finance growth initiatives or manage debt obligations. The ability to issue a variety of securities offers flexibility in tailoring the capital structure to the company's evolving requirements and market appetite.
Quipt Home Medical's decision to file a shelf prospectus can be interpreted as a signal to the market regarding its growth trajectory. In the context of the home medical equipment industry, characterized by rapid technological advancements and a growing demand for home healthcare solutions, Quipt's move may be aimed at ensuring they have the necessary capital to invest in innovation and expand their market share. The shelf registration process may also be seen as a preparation for opportunistic acquisitions, enabling Quipt to respond swiftly to consolidation opportunities within the fragmented home medical equipment market.
Market reaction to such filings typically hinges on the perceived strength of the company's strategic planning and its ability to deploy new capital effectively. Investors and competitors alike will be monitoring Quipt's subsequent moves, as the execution of any offerings under the shelf prospectus could impact market dynamics, competitive positioning and investor sentiment.
The legal implications of Quipt Home Medical Corp.'s shelf prospectus filing are multifaceted. It's important to recognize that such filings, while routine, involve a comprehensive review process by regulatory bodies in both Canada and the United States. The use of the U.S./Canada Multijurisdictional Disclosure System indicates a streamlined process for cross-border securities offerings, reflecting Quipt's operational presence in both countries.
Prospective investors should be aware that the terms of the securities and the use of proceeds from any future offerings will be detailed in prospectus supplements at the time of each offering. These supplements will provide critical legal disclosures, including risk factors and specific terms of the securities being offered. The transparency and regulatory compliance demonstrated in these filings are essential for maintaining investor confidence and ensuring adherence to securities laws.
CINCINNATI, Dec. 27, 2023 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (the “Company”) (NASDAQ: QIPT; TSX: QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, today announced that it has filed a preliminary short form base shelf prospectus (the “Shelf Prospectus”) with the securities commissions in each of the provinces and territories of Canada, and a corresponding registration statement on Form F-10 (the “Registration Statement”) with the United States Securities and Exchange Commission under the U.S./Canada Multijurisdictional Disclosure System. The Shelf Prospectus and Registration Statement, when made final and effective, will enable the Company to offer up to C
The Shelf Prospectus will enable the Company to access new capital or issue securities in connection with strategic acquisitions if and when needed. The amount and timing of any future offerings or issuances will be based on the Company’s financial requirements and market conditions at that time.
The filing of the Shelf Prospectus replaces and is made for the purpose of restoring the original financing capacity of C
The terms of future offerings or issuances under the Shelf Prospectus, the intended use of the net proceeds resulting from such offerings and the terms of the Securities to be offered, if any, will be established at the time of any such offering and will be described in a prospectus supplement filed with the applicable Canadian securities commissions at the time of such an offering.
A copy of the Shelf Prospectus is available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, or may be obtained by request from the secretary of the Company at 1019 Town Drive Wilder, Kentucky, USA 41076, telephone: (859) 878-2220.
No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
ABOUT QUIPT HOME MEDICAL CORP.
The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.
For further information please visit our website at www.quipthomemedical.com, or contact:
Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
cole.stevens@myquipt.com
Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
investorinfo@myquipt.com.
Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to the Company, including: the approval of the final base shelf prospectus and the timing of filing thereof; future financing opportunities; the filing and effectiveness of any potential prospectus supplement; the amount and terms of any Securities to be offered under one or more shelf prospectus supplement(s); and the Company’s focus on its acquisition strategy, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: the acquisition targets achieving results at least as good as historical performances; and the Company successfully identifying, negotiating and completing additional acquisitions, including accretive acquisitions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory; legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company’s information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with United States Securities and Exchange Commission and available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.ca. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
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