– Transaction significantly reduces potential
dilution with a net reduction of warrants equivalent to 8.2% of
units outstanding –
TORONTO, April 23,
2024 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN)
(TSX: DHT.U) (the "Trust") announces the closing of its
previously announced preferred securities refinancing, whereby its
US$114,760,000 aggregate principal
amount of Series A and Series B preferred securities and 6,369,180
warrants were exchanged for US$135,202,000 aggregate principal amount of new
Series C preferred securities and 1,749,996 new warrants. The new
warrants have an exercise price of US$15.00, representing a 20% premium to the five
day volume-weighted average price of the Trust's units.
"We will continue to seek to optimize our capital structure to
lower our cost of capital," said Behzad
Khosrowshahi, Chief Executive Officer of the Trust. "We have
addressed potential dilution concerns by retiring approximately 6.4
million in-the-money warrants and replacing them with approximately
1.7 million out-of-the-money warrants. The transaction did not
involve any cash out from the Trust and our fully diluted share
count is reduced by 4.6 million, or 8.2% of units outstanding,
following the transaction."
Scotia Capital Inc. acted as exclusive financial advisor to the
Trust.
About DRI Healthcare
Trust
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI
Healthcare"), the pioneer in global pharmaceutical royalty
monetization with a 35-year history of accelerating innovation by
providing capital to inventors, academic institutions and biopharma
companies. Since its founding in 1989, DRI Healthcare has deployed
more than US$3.0
billion, acquiring more than 70 royalties on 45-plus drugs,
including Eylea, Keytruda, Orserdu,
Spinraza, Stelara, Vonjo, Zejula and Zytiga. DRI Healthcare
Trust's units are listed and trade on the Toronto Stock Exchange in
Canadian dollars under the symbol "DHT.UN"
and in U.S. dollars under the symbol
"DHT.U". To learn more, visit
drihealthcare.com or follow us on LinkedIn.
SOURCE DRI Healthcare Trust