Tekla Healthcare Opportunities Fund Announces Renewal of Share Repurchase Program

Rhea-AI Summary

Tekla Healthcare Opportunities Fund has renewed its share repurchase program, allowing the purchase of up to 12% of its outstanding common shares for one year, ending July 14, 2022. The renewal aims to enhance shareholder value and reduce the discount between the market price and net asset value (NAV) per share. The repurchases will be at the discretion of Tekla Capital Management LLC, the Fund's adviser. Although intended to increase NAV, there is no guarantee that share repurchases will bolster the Fund’s market price.

Positive

• Renewal of share repurchase program could enhance shareholder value.
• Program aims to reduce the discount between market price and net asset value.

Negative

• No assurance that share repurchases will increase market price or NAV.
• Performances will be discretionary, potentially leading to inconsistent buybacks.

Tekla Healthcare Opportunities Fund (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 Opportunities Fund (NYSE: THQ) 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/20210325005921/en/

FAQ

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

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

How much of THQ's shares can be repurchased?

The Fund is authorized to repurchase up to 12% of its outstanding common shares.

When does the renewed share repurchase program for THQ expire?

The renewed program will end on July 14, 2022.

Who manages the share repurchase program for THQ?

Tekla Capital Management LLC manages the share repurchase program at its discretion.

Is there a guarantee that THQ's market price will increase due to share repurchases?

There is no assurance that the market price of THQ's shares will increase as a result of share repurchases.