Extendicare Announces Suspension of its Dividend Reinvestment Plan
MARKHAM, Ontario, March 19, 2020 (GLOBE NEWSWIRE) — Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) today announced that it is suspending its Dividend Reinvestment Plan (“DRIP”) in respect of any future declared dividends until further notice. Accordingly, the dividend payable on April 15, 2020 to shareholders of record on March 31, 2020 will be the last dividend payment eligible for reinvestment by participating shareholders under the DRIP. Subsequent dividends will be paid only in cash. Upon reinstatement of the DRIP, plan participants enrolled in the DRIP at the time of its suspension who remain enrolled at the time of its reinstatement will automatically resume participation in the DRIP.
“As governments, industries and citizens grapple with the COVID-19 pandemic, we at Extendicare are focused on doing all we can to ensure the safety of our residents, home health care clients, team members and their families,” stated Dr. Michael Guerriere, President and Chief Executive Officer. “Our leadership team is working closely with governments, public health agencies and industry peers to coordinate our response in this rapidly changing environment. I am exceedingly grateful for and heartened by the dedication and professionalism shown by all the members of our national care team.“We have chosen to suspend our DRIP as we do not believe it is in the best interests of the Company nor its shareholders to issue shares at current prices, particularly given our strong balance sheet, ample liquidity and the reality that over 90% of our business is government funded.”About ExtendicareExtendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, Esprit Lifestyle, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. We are committed to delivering quality care throughout the health continuum to meet the needs of a growing seniors population. We operate or provide contract services to a network of 122 long-term care homes and retirement communities (69 owned/53 contract services), provide approximately 9.3 million hours of home health care services annually, and provide group purchasing services to third parties representing approximately 71,600 senior residents across Canada. Our qualified and highly trained workforce of approximately 22,000 individuals is passionate about providing high quality services to help people live better.Forward-looking Statements
Information provided by Extendicare from time to time, including this release, contains or may contain forward-looking statements concerning anticipated financial events, results, circumstances, economic performance or expectations with respect to Extendicare and its subsidiaries, including, without limitation, statements regarding its business operations, business strategy, and financial condition. Forward-looking statements can be identified because they generally contain the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “objective”, “plan”, “project”, “will” or other similar expressions or the negative thereof. Forward-looking statements reflect management’s beliefs and assumptions and are based on information currently available, and Extendicare assumes no obligation to update or revise any forward-looking statement, except as required by applicable securities laws. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Extendicare to differ materially from those expressed or implied in the statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on Extendicare’s forward-looking statements. Further information can be found in the disclosure documents filed by Extendicare with the securities regulatory authorities, available at www.sedar.com and on Extendicare’s website at www.extendicare.com.Extendicare contact:
Senior Vice President and Chief Financial Officer
Phone: (905) 470-4000; Fax: (905) 470-4003