Tekla World Healthcare Fund Announces Renewal of Share Repurchase Program

Rhea-AI Summary

Tekla World Healthcare Fund (NYSE: THW) has announced a renewal of its share repurchase program, authorizing purchases of up to 12% of its outstanding common shares starting from July 14, 2023, until July 14, 2024. This initiative aims to enhance shareholder value and reduce the market price discount relative to the net asset value per share. The program will allow for increased liquidity and potentially boost the Fund's net asset value per share. The execution of repurchases will be managed by Tekla Capital Management LLC, although no specific purchase timelines or amounts are guaranteed.

Positive

• Renewal of share repurchase program to enhance shareholder value.
• Potential increase in net asset value per share.
• Intended to reduce market price discount against net asset value.

Negative

• No assurance that repurchases will positively impact market price.
• The effectiveness of the program will be monitored but is not guaranteed.

BOSTON--(BUSINESS WIRE)-- Tekla World Healthcare 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, 2023. 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, 2024. 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 World Healthcare Fund (NYSE: THW) 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/20230316005680/en/

Tekla World Healthcare Fund

www.teklacap.com

(877) 855-3434

Source: Tekla World Healthcare Fund

FAQ

What is the purpose of the share repurchase program for Tekla World Healthcare Fund (THW)?

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

When does the renewed share repurchase program for THW start and end?

The renewed share repurchase program will run from July 14, 2023, to July 14, 2024.

How much of its outstanding shares can Tekla World Healthcare Fund (THW) repurchase?

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

Will the share repurchase program definitely increase the market price of THW shares?

There is no assurance that the share repurchase program will result in an increase in the market price of the Fund’s shares.