Draxis board says stock undervalued, authorizes buyback of 3.533 million shares

By E. Janene Geiss

Philadelphia, Dec. 8 - Draxis Health Inc.'s board of directors said it has authorized the repurchase for cancellation up to 3,522,530 of its common shares, representing 10% of the 35,225,296 common shares in the public float as of Dec. 6.

A draft Notice of Intention to Make a Normal Course Issuer Bid was submitted to the Toronto Stock Exchange for review, according to a company news release.

Under the proposed issuer bid, purchases of common stock at market prices can be made only on the Toronto Stock Exchange from time to time during the period starting two days following the exchange's approval of the company's notice of intention and ending no later than one year afterwards.

During the past year, the company has not purchased any of its common shares, officials said.

The company's board said it believes the underlying value of the company is not reflected in the current market price of its common shares, concluding that the repurchase presently constitutes an appropriate use of financial resources and would be in the best interest of shareholders.

Draxis Health, through its wholly owned subsidiary Draxis Specialty Pharmaceuticals Inc., based in Mississauga, Ont., makes sterile products including injectables, ointments and creams.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.