Medexus Pharmaceuticals (CVE:MDP), a specialty pharmaceutical company, announced Tuesday that it intends to make a normal course issuer bid to repurchase about a million shares of the company.
The bid represents approximately 6.8% of outstanding Medexus stock and around 10% of its public float, or a total of 1,005,333 shares.
The Montreal-based company is working with Canaccord Genuity Corp on an automatic securities purchase plan to complete the share buyback. Medexus has submitted a notice of its plan to the TSX Venture Exchange for approval.
The Medexus board said in a statement that it believes the market price of the shares may not fully reflect their underlying value, and that the proposed plan is in the best interest of the company and a desirable use of corporate funds.
The company also noted that the repurchase plan is advantageous to remaining Medexus shareholders and will increase the proportionate value of each shareholder.
Shares will be purchased on the open market through the TSX Venture Exchange or by any other means permitted by the exchange. The repurchase price will be the prevailing market price at the time of purchase.
The company anticipates the bid to commence by May 16 and will conclude by May 15, 2020 or once the company has purchased the maximum number of shares outlined in the bid. Medexus may also provide a notice of termination to the exchange at any time.
Medexus is a specialty pharmaceutical company with a North American commercial platform, focused on auto-immune disease and pediatrics.
It recently received Health Canada authorization to distribute Treosulfan through a special access program.
Treosulfan is a conditioning agent used before stem cell transplantation.
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