22nd Jun 2020 07:00
22 June 2020
BioPharma Credit plc
(the "Company")
activation of discount control mechanism
BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, announces that further to Section 9 of its prospectus published 14 March 2018 (the "Prospectus"), the Company will be required to purchase shares in the market as a result of the shares trading in excess of a 5% discount to its Net Asset Value per Ordinary Share over a 3 month rolling period using the methodology described in the Prospectus.
As per the terms of the Prospectus, the Company will, subject to meeting its Target Dividend, use 50% of the Company's capital and income proceeds generated after the conclusion of such 3 month rolling period, to repurchase Ordinary Shares at least until such time as the Ordinary Shares trade at an average discount of 1% or less to the Net Asset Value per Ordinary Share over a 2 week rolling period. The Company intends to meet this commitment and will announce the details of buybacks in due course.
Jeremy Sillem, Chairman of BioPharma Credit commented, "As a result of the extremely volatile equity market conditions, the discount to Net Asset Value at which the Company's shares traded narrowly exceeded 5% over a rolling 3 month period using the methodology described in the prospectus. The action announced today is a testament to the rigorous discount control mechanisms and corporate governance standards of the Company and we are pleased to implement it to enhance value for shareholders."
Enquiries
BioPharma Credit plc
via Link Company Matters Limited
Company Secretary
+44 (0)1392 477 509
J.P. Morgan Cazenove
+44 (0)20 7742 4000
William Simmonds
Oliver Kenyon
Buchanan
+44 (0)20 7466 5000 / [email protected]
David Rydell
Mark Court
Jamie Hooper
Henry Wilson
Notes to Editors
BioPharma Credit PLC is London's only listed specialist investor in debt from the life sciences industry and joined the LSE on 27 March 2017. The Company seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. The Company seeks to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.
LEI: 213800AV55PYXAS7SY24
Related Shares:
Biopharma Cred.