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Tekla Healthcare Opportunities Fund Announces Renewal of Share Repurchase Program
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
buyback
Rhea-AI Summary
Tekla Healthcare Opportunities Fund (NYSE: THQ) has announced a renewal of its share repurchase program, allowing up to 12% of its outstanding common shares to be repurchased in the open market over the next year, ending July 14, 2023. This decision aims to enhance shareholder value and potentially narrow the discount between market price and net asset value. The timing and amount of purchases will be determined by Tekla Capital Management LLC, with no guarantee of price increases resulting from these repurchases.
Positive
Renewal of share repurchase program aimed at enhancing shareholder value.
Potential to reduce the discount between market price and net asset value per share.
Negative
No assurance that repurchases will lead to an increase in market price or net asset value.
Repurchase activity and its impact will only be disclosed in future shareholder reports.
Possible financial strain due to ongoing share repurchases.
BOSTON--(BUSINESS WIRE)--
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, 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 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.
What is the purpose of the share repurchase program for THQ?
The share repurchase program aims 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.
How much of THQ's outstanding shares can be repurchased?
The Fund can repurchase up to 12% of its outstanding common shares.
When does the renewed share repurchase program for THQ end?
The renewed share repurchase program will end on July 14, 2023.
Who manages the share repurchase timing and amount for THQ?
Tekla Capital Management LLC is responsible for the timing and amount of share repurchases.
Is there a guarantee that THQ's share repurchases will increase its stock price?
No, there is no assurance that the market price of the Fund's shares will increase as a result of share repurchases.
