UTAH MEDICAL PRODUCTS,
UTMD Announces Results of Self-Tender
Contact: Paul Richins
Salt Lake City, Utah - Utah Medical Products, Inc.s (Nasdaq:UTMD) Tender Offer for 1,000,000 of its Shares at $8.20 per share, initially announced on August 10, expired at 5:00 p.m. Eastern Time Friday September 15. According to preliminary results tabulated by Registrar and Transfer Company, the Depositary for the Offer, which need final verification, shareholders tendered 1,607,000 shares.
In accordance with the applicable regulations of the SEC, which allow the Company to purchase pursuant to the Offer an additional amount of shares not to exceed 2% of UTMDs outstanding shares, UTMD will purchase 100% of the odd lots and 69% of all other shares tendered, or about 1,120,000 total shares. UTMD estimates that proceeds will be distributed to selling shareholders by the Depositary in about two weeks time.
After the Offer, UTMDs outstanding shares will number approximately 5,034,000. Given UTMDs ability to generate cash from its operations, the Board of Directors is pleased to have the opportunity to repurchase shares at such a low value, and remains committed to increasing shareholder value with an ongoing share repurchase program. Shareholders who did not tender their shares now own 21% more of UTMD than they did before the Offer expired.
CEO Kevin Cornwell states, "This year has obviously been a difficult year for UTMD in terms of sustaining its top line sales growth. In the U.S., competition has been keen in our core product areas and hospitals have been increasingly constrained in their ability to buy premium products; and overseas, the strength of the dollar has impeded business activity. We believe external market conditions will improve, and in addition, look forward to introduction of new products from internal product development, and the possibility of finding and successfully completing an accretive acquisition. Despite the recent period of slower sales, UTMD remains very profitable and operationally fit. I believe we will begin to renew UTMDs sales growth, with the resulting improving performance together with the share repurchases generating more interest from investors looking for excellent stock values."
Investors are cautioned that this press release contains forward looking statements and that actual events may differ from those projected. Risks factors that could cause results to differ materially from those projected include market acceptance of products, timing of regulatory approval of new products, UTMDs ability to efficiently manufacture, market, and sell its products, among other factors that have been outlined in UTMDs public disclosure filings with the SEC.
Utah Medical Products, Inc., with particular interest in healthcare for women and their babies, develops, manufactures, assembles and markets a broad range of disposable and reusable specialty medical devices designed for better health outcomes for patients and their care-providers.