Vancouver's Cardiome Pharma Corp. (Nasdaq:CRME; TSX:COM) will launch a tender offer to purchase up to 6.47 million of its shares for cancellation.
The offer, which expires in October, is one way the company is returning capital to shareholders given the current trading range of Cardiome shares.
Doug Hanzen, president and CEO of Cardiome, said, "We believe the offer strikes the right balance between returning value to shareholders and retaining sufficient cash to pursue our current initiatives."
The company expects to pay up to US$27.5 million for the shares in a Dutch auction style offer, which lets shareholders select a price they are willing to receive of the offer. Shareholders will receive the lowest price per share between US$4.25 and US$5.10 per share. All common shares will be purchased under the same price.
Oppenheimer & Co. and Canaccord Capital will serve as dealer managers for the tender offer in the U.S. and Canada.
Cardiome's share price range during the past week: between $4.16 and $4.59; 52-week high: $9.45; 52-week low: $3.22.