/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Feb. 19, 2021 /CNW/ - DRI Healthcare Trust (the
"Trust") (TSX: DHT.U) (TSX: DHT.UN), is pleased to
announce the successful closing of its previously announced initial
public offering (the "Offering"). Pursuant to the Offering, the
Trust sold an aggregate of 36,527,000 units of the Trust at an
offering price of US$10.00 per unit,
for aggregate gross proceeds of US$365,270,000.
The Trust also completed its previously disclosed concurrent
private placement, issuing an aggregate of 3,580,407 units for
aggregate consideration of US$34,730,000.
In total, the Trust issued an aggregate of 40,107,407 units for
aggregate gross proceeds of US$400,000,000. Approximately US$292.7 million of the net proceeds of the
Offering and the concurrent private placement will be used to
acquire an initial portfolio of 18 pharmaceutical royalty assets
and related working capital. The remainder of the net proceeds of
the Offering will be used to fund future royalty acquisitions and
for general purposes.
"We are very pleased with this milestone in our development
which will continue the 18-year track record of our manager, DRI
Capital, of investing in long-term royalty streams on
pharmaceutical products," said Behzad
Khosrowshahi, CEO of the Trust. "The pharmaceutical industry
is large and growing, with significant R&D requirements. The
Trust intends to execute on a strategy to provide financing to
advance innovation in the industry and generate stable returns for
its investors."
The Trust has granted the underwriters an over-allotment option
to purchase up to an additional 5,479,050 units of the Trust at the
offering price for additional gross proceeds to the Trust of
US$54,790,500 if exercised in full.
The over-allotment option can be exercised for a period of 30 days
from the closing date of the Offering.
The units of the Trust are listed on the Toronto Stock Exchange
in U.S. dollars under the symbol "DHT.U" and in Canadian dollars
under the symbol "DHT.UN".
The Offering was made through a syndicate of underwriters co-led
by Scotiabank, UBS Securities Canada Inc. and RBC Capital Markets,
and including Truist Securities, Inc., BMO Capital Markets, CIBC
Capital Markets, National Bank Financial Inc. and Canaccord Genuity
Corp.
No securities regulatory authority has either approved or
disapproved the contents of this press release. This press release
does not constitute an offer to sell or a solicitation of an offer
to buy any securities of the Trust in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
These securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any U.S. state securities laws, and may
not be offered, sold or delivered, directly or indirectly, in
the United States except in
compliance with the registration requirements of the U.S.
Securities Act and applicable U.S. state securities laws or
pursuant to an exemption therefrom.
About DRI Healthcare Trust
DRI Healthcare Trust is an
unincorporated open-ended trust governed by the laws of the
Province of Ontario, externally
managed by its manager, DRI Capital Inc. DRI Healthcare Trust
provides unitholders with differentiated exposure to the
anticipated growth in the global pharmaceuticals and biotechnology
markets. Our business model is focused on managing and growing a
diversified portfolio of pharmaceutical royalties to deliver
attractive growth in cash royalty receipts over the long term.
Forward-Looking Information
This press release
contains "forward-looking information" within the meaning of
applicable securities laws, including statements with regard to the
size and prospects of the pharmaceutical industry, the use of
proceeds by the Trust, the Trust's business model and growth
prospects and expectations regarding the ability to
generate returns for investors. Forward-looking information
involves known and unknown risks and uncertainties, many of which
are beyond the Trust's control, that could cause actual results to
differ materially from those that are disclosed in or implied by
such forward-looking information. These risks and uncertainties
include, but are not limited to, those described under "Risk
Factors" in the Trust's supplemented base PREP prospectus.
Forward-looking information is based on management's beliefs and
assumptions and on information currently available to management.
Although the forward-looking information contained in this press
release is based upon what management believes are reasonable
assumptions, you are cautioned against placing undue reliance on
this information since actual results may vary from the
forward-looking information. Unless otherwise noted or the context
otherwise indicates, the forward-looking information contained in
this press release is provided as of the date of this press
release, and the Trust does not undertake to update or amend such
forward-looking information whether as a result of new information,
future events or otherwise, except as may be required by applicable
law.
SOURCE DRI Healthcare Trust