Photocure - Share buy back and proposed extraordinary dividend of NOK 4.00/share

The Board of Directors of Photocure ASA decided on the 27th of October 2009 to initiate a share buyback program under the existing power of attorney. The Board also decided to propose call an extraordinary dividend of NOK 4.00 per share. The Board of Directors moreover proposes that the existing power of attorney to buy own shares, restricted to 3% of Photocure's share capital, is extended to up to 10% of the company's share capital. The objective of the share buyback program and the proposed extraordinary dividend is to reduce the capital in Photocure. Photocure will seek to amortize the shares that are bought back.

 

In connection with the above, the company will call for an extraordinary general meeting to be held on the 25th of November 2009.

 

The sale of the rights, assets, and liabilities related to Metvix for up to EUR 51 million as reported on 1 October 2009, has given Photocure a significant cash position. The Board of Directors considers it appropriate to let the Shareholders of the company take part in this cash position through the proposed extraordinary dividend and also believes that it is value enhancing for the Shareholders to use some of the cash to buy back own shares.

 

Given approval from the planned extraordinary general meeting, the dividend will be paid during December 2009 to the Shareholders of the Company as at the date of the extraordinary general meeting.

 

The buy back of shares will commence immediately and be carried out on Oslo Stock Exchange in line with market practice and in accordance with the regulations of Oslo Stock Exchange. The buy backs will be up to 25% of the daily volume in the share, but in total be below 3% of the company's share capital until the extended limit of 10% of the company's share capital potentially is approved by the extraordinary general meeting as outlined above. Reference is given to the power of attorney given in the general meeting of 29th of April 2009:"The board of directors is, in accordance with the Public Limited Companies Act § 9-4, authorised to acquire own shares in the total nominal value of NOK 331,399. The price for each acquired share shall be minimum NOK 1 and maximum NOK 100. The board of directors may in its own discretion decide on the means to be used to acquire and dispose of shares. The authorization is valid until the ordinary general meeting of 2010, but will in any event cease to be valid on 30 June 2010."

 

The Board of Directors considers that Photocure, independently of the proposed measures, will have the financing to carry through the company's current development program and to evaluate new opportunities going forward. Photocure will, as previously stated, focus its dermatology activities on the development and commercialization of Visonac(TM) and other products to establish a strong commercial platform with PDT based technology besides its other operations.