TORONTO, April 26, 2018 /CNW/ - HLS Therapeutics Inc.
("HLS" or the "Company") (TSXV: HLS) announces that it intends to
redeem 9,321,492 (71.83%) of the Company's outstanding Class A
preferred shares ("Preferred Shares") on May
9, 2018 on a pro rata basis (the "Partial
Redemption"). The shares will be redeemed at a price of CDN
$0.61149 per share, for a total
redemption payment of CDN $5.7
million (the "Aggregate Redemption Payment").
A notice of redemption will be provided to registered holders of
Preferred Shares in accordance with the rights, privileges and
conditions attached to the Preferred Shares (the "Share Terms").
HLS expects that the notice will be mailed on or about April 26, 2018. Non-registered shareholders (i.e.
shareholders that hold their Preferred Shares through a broker or
other intermediary) should contact their broker or other
intermediary for information regarding the redemption process for
Preferred Shares in which they hold a beneficial
interest.
Under the plan of arrangement (the "Arrangement") involving
former HLS Therapeutics Inc. and Automodular Corporation ("AMD")
completed on March 12, 2018, former
shareholders of AMD received common shares of HLS and Preferred
Shares in exchange for their common shares of AMD. The purpose of
the Preferred Shares is to facilitate the distribution to such
shareholders, through one or more redemptions of Preferred Shares,
of the net settlement proceeds from AMD's litigation with General
Motors Company and General Motors of Canada Limited (the "GM
Claim") and certain additional AMD funds (deposited into an escrow
account on closing of the Arrangement) to the extent such funds are
not used by HLS to satisfy legacy AMD claims.
The Aggregate Redemption Payment represents the net settlement
proceeds in respect of the GM Claim, together with additional cash
in the escrow account approved for distribution to holders of
Preferred Shares by the Board of Directors of HLS in accordance
with the Share Terms. HLS expects that the balance of the Preferred
Shares will be redeemed (and the remainder of the escrowed funds,
if any, distributed to the holders of Preferred Shares) through a
final redemption at the end of 2020.
The Company's transfer agent and redemption agent is
Computershare Investor Services Inc. Questions regarding the
redemption process may be directed to Computershare at
1-800-564-6253 or by e-mail to
corporateactions@computershare.com.
About HLS
Formed in 2015, HLS is a specialty pharmaceutical company
focused on the acquisition and commercialization of late stage
development, commercial stage promoted and established, branded
pharmaceutical products in the North American markets. HLS's focus
is on products targeting the central nervous system and
cardiovascular therapeutic areas. HLS's management team is composed
of seasoned pharmaceutical executives with a strong track record of
success in these therapeutic areas and at managing products in each
of these lifecycle stages.
FORWARD LOOKING INFORMATION
This release includes forward-looking statements regarding
HLS and its business. Such statements are based on the current
expectations and views of future events of HLS's management. In
some cases the forward-looking statements can be identified by
words or phrases such as "may", "will", "expect", "plan",
"anticipate", "intend", "potential", "estimate", "believe" or the
negative of these terms, or other similar expressions intended to
identify forward-looking statements, including, among others,
statements with respect to timing for mailing of the notice of
redemption in connection with the Partial Redemption and the timing
for subsequent redemptions of Preferred Shares. The forward-looking
events and circumstances discussed in this release may not occur
and could differ materially as a result of known and unknown risk
factors and uncertainties affecting HLS, including the risk that
the escrowed funds may not be sufficient to address AMD legacy
matters, risks relating to economic factors and many other factors
beyond the control of HLS. Forward-looking statements and
information by their nature are based on assumptions and involve
known and unknown risks, uncertainties and other factors which may
cause HLS's actual results, performance or achievements, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statement or information. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. A discussion of the material risks and assumptions
associated with this release can be found in the joint information
circular of HLS and AMD dated February 5,
2018 in respect of the Arrangement, which has been filed on
SEDAR and can be accessed at www.sedar.com. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and HLS undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE HLS Therapeutics Inc.