Medical Facilities Corporation Boosts Bid Price and Extends Deadline for Shareholder Participation

Medical Facilities Corporation (TSX: DR), a leading provider of specialty surgical hospitals and ambulatory surgery centers in the United States, has announced an increase in the price range and an extension of the expiry date for its previously announced substantial issuer bid (SIB). The amended offer aims to purchase up to $80,750,000 of the Corporation's common shares for cancellation, representing approximately 21.3% of the total number of issued and outstanding Common Shares.

The new price range for the Offer is not less than $16.50 and not more than $18.00 per Common Share, with increments of $0.10 per Common Share. This represents a significant increase from the original price range of $15.50 to $17.00 per Common Share. The high end of the new range ($18.00) represents a 15.5% premium to the 20-day VWAP of the Common Shares prior to the announcement of the Offer and a 22.7% premium to the 20-day VWAP of the Common Shares prior to the announcement of the sale of Black Hills Surgical Hospital, LLP to Sanford Health on November 15, 2024.

The expiry date of the Offer has been extended to 11:59 p.m. (Toronto time) on March 11, 2025, from the original expiry date of February 24, 2025. This extension provides shareholders with more time to consider the Offer and potentially increase participation.

The Corporation has stated that the amended Offer represents its final effort to return capital to shareholders in this manner. Any cash allocated to the Offer but not used to repurchase Common Shares will be distributed to Shareholders by way of a special dividend following the Expiry Date.

The Information Agent for the Offer is Shorecrest Group Ltd., and the Offer Documents will be mailed to Shareholders, filed with applicable Canadian securities regulatory authorities, and made available on SEDAR+ at www.sedarplus.com, as well as posted on the Corporation's website at www.medicalfacilitiescorp.ca.




The increased price range and extended expiry date of the Offer are expected to have a positive impact on the number of shares tendered and the overall success of the SIB. The higher price range makes the offer more attractive to shareholders, encouraging more of them to tender their shares. The extension of the expiry date provides shareholders with more time to consider the Offer, potentially leading to a higher acceptance rate. This could result in a larger number of shares being tendered and ultimately purchased by the Corporation.

In conclusion, Medical Facilities Corporation's decision to increase the price range and extend the expiry date of its substantial issuer bid is a positive development for shareholders. The amended Offer represents an attractive opportunity for shareholders to monetize their holdings at a premium, while the Corporation seeks to return capital to shareholders in an efficient manner. Shareholders should carefully consider the terms of the Offer and consult with their advisors before making a decision.