Tekla Healthcare Investors announces an Equity Buyback.
March 23, 2017 at 04:00 am
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Tekla Healthcare Investors (NYSE:HQH) announces a share repurchase program. Under the program, the company will repurchase up to 12% of its outstanding shares. The shares will be repurchased in the open market. The Board authorized the program as a result of its periodic review of the options available to enhance the shareholders’ value and potentially reduce the discount between the market price of the Fund’s shares and the net asset value per share. The 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. There is no assurance that the Fund will repurchase the shares at any specific discount levels or in any specific amounts or on any specific date. 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 repurchases. The Board will monitor the effect of the program on the Fund's market price and the net asset value per share, expense ratio and investment strategy over time. The amount and the timing of the repurchases will be made at the discretion of Tekla Capital Management LLC, the Fund’s investment adviser. The program will be valid for a period of one year ending on July 14, 2018.
abrdn Healthcare Investors (the Fund), formerly Tekla Healthcare Investors, is a non-diversified closed-end healthcare fund. The Fund's investment objective is to seek long-term capital appreciation by investing primarily in securities of healthcare companies. In addition, it seeks to provide regular distribution of realized capital gains. It may invest up to 20% of its net assets in securities of foreign issuers, located primarily in Western Europe, Canada and Japan, and securities of United States issuers that are traded in foreign markets. It invests in healthcare industries and is focused on the smaller, emerging companies, investing a maximum of 40% of the Fund's assets in restricted securities of both public and private companies. It invests in subsectors, such as biotechnology, pharmaceuticals, healthcare equipment, healthcare supplies, life science tools and services, healthcare distributors, managed healthcare and others. abrdn Inc. is the investment adviser of the Fund.