Medexus starts normal course issuer bid for 6% convertibles due 2023

By Mary-Katherine Stinson

Lexington, Ky., Feb. 14 – Medexus Pharmaceuticals, Inc. announced it intends to purchase for cancellation up to C$3.53 million of its C$41.56 million outstanding 6% convertible debentures due 2023 through a normal course issuer bid, according to a press release.

The amount represents approximately 10% of the public float and approximately 8.5% of the outstanding debentures as of Jan. 31.

The company plans to purchase the notes in open market transactions through the facilities of the Toronto Stock Exchange or alternative trading systems. The stock exchange has approved the normal course issuer bid, which will begin on Feb. 16 and will expire on Feb. 15, 2023.

Under the stock exchange’s rules, the company will be allowed to purchase a daily maximum of C$1,898 principal amount, representing 25% of the average daily trading volume. Any purchases made in accordance with the stock exchange’s block purchase exception will not be subject to the maximum.

From Aug. 1 through Jan. 31, the company’s average daily trading volume was C$7,592 principal amount.

“We believe that purchases of our debentures will allow us to deleverage our balance sheet [and] lead to lower overall debt and levels and reduced future debt service obligations,” said Ken d’Entremont, Medexus’ chief executive officer, in the press release.

He further stated the company would monitor the market price and seek to make purchases when they believe the debentures are undervalued.

The Bolton, Ont.-based Medexus is a rare disease pharmaceutical company focused on the therapeutic areas of rheumatology, autoimmune diseases, specialty oncology and pediatrics.

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