QHR CORPORATION V.QHR

Pender Growth Fund Supports Sale

[Anschutz]

News release from Pender suggests there is still wiggle room for QHR to entertain offers from others.


Pender Growth Fund Announces Agreement to Support Sale of Investee Company 22 Aug 2016 09:16 ET
CNW Group

(TSXV: PTF) Pender Growth Fund (VCC) Inc., (the "Fund") announces that the Company representing its largest investment, QHR Corporation (TSXV: QHR) has entered into a definitive arrangement agreement with Loblaw Companies Limited (TSX: L), under which Loblaw will purchase all of the shares of QHR for cash at a price of $3.10 per share or approximately $170 million in the aggregate. Completion of the arrangement is subject to receipt of QHR shareholder and Court approval as well as other customary closing conditions.

The Fund, which owns 2,624,000 shares of QHR has entered into a Voting Support Agreement with Loblaw to support the arrangement. The closing of the transaction is expected take place in October. If the transaction does close, the Fund will net approximately $8.1 million. In such event, the Fund anticipates that it will be in a position to redeem all outstanding Class B and R shares that have been previously submitted for redemption.

About Pender Growth Fund

The Fund is a later-stage, diversified, venture capital corporation, focused on undervalued public and private companies. The Fund's investors in British Columbia received a tax credit of 30% from the provincial government at the time of purchase. The Fund was established in 2003 and has a net asset value of approximately $23 million.

SOURCE Pender Growth Fund (VCC) Inc.

To view this news release in HTML formatting, please use the following URL: https://www.newswire.ca/en/releases/archive/August2016/22/c7568.html

SOURCE: Pender Growth Fund (VCC) Inc.

[mjh9413]

...but don't you think a deal with SDM gives rise to privacy and predatory ramifications?  Health Canada might want to look at their objectives. Much better in hands of Telus, the natural suitor to QHR. p.s. horse has bolted from stable but it sure answers my earlier question on valuation!!!

[Anschutz]

What we are witnessing is a result of Health Canada and provinces inablity to realize a pan-Canadian health system.  Through Canada Health Infoway (CHI), the feds and provinces have been trying to build a national system.  The reality is it is costing too much and taking too long.  Although their efforts have been noble, they are being eclipsed by technology, public expectations

[mjh9413]

Respectfully I disagree and feel you cannot allow a large pharmacy and its even larger parents to own the system and its future development.  SDM's is not some philanthropic endeavour to create a best-in-class EMR/EHR system but is clearly to provide a predatory advantage, and dictating development and accessing data is simply allowing this. It is not conducive to even Health Canada's

[mjh9413]

Two other points. Telus would not have spent so many millions (even over a billion) if it was not in this forever, and this long-term interest recently culminated in those surveys it paid for across Canada. Second, RBC is Telus's lead investment bank and, while I have not done a complete breakdown, RBC is clearly doing a significant amount of the buying at these new levels.

[Anschutz]

Came across an article written by an analyst for Laurentian this morning.  Interesting how they are spinning the sale to Loblaw as a strategic investment, and suggest that a buyout by Telus is inevitable as it would have anti-trust implications.  Interesting also to see that Laurentian has been one of the top buyers of shares since Monday's announcement. https://www.cantechletter

[Anschutz]

Sorry correction needed to my last post... "Interesting how they are spinning the sale to Loblaw as a strategic investment, and suggest that a buyout by Telus is inevitable as it would have anti-trust implications." Should read... Interesting how they are spinning the sale to Loblaw as a strategic investment (and inevitable), and suggest that a buyout by Telus would have anti-trust

[mjh9413]

I guess this will be my last post until material development happens but I am bemused by the proximity of the collaboration NR and the takeover NR and what that implies. The former possibly scared SDM into action but they sure must have worked very quickly to get this deal through the Board. It is hard to imagine QHR would not have at least hinted to Telus that SDM was in the frame if such was the