DRI Healthcare Trust Completes Initial Public Offering

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, Feb. 19, 2021 /CNW/ – DRI Healthcare Trust (the "Trust") (TSX: DHT.U) (TSX: DHT.UN), is pleased to announce the successful closing of its previously announced initial public offering (the "Offering"). Pursuant to the Offering, the Trust sold an aggregate of 36,527,000 units of the Trust at an offering price of US$10.00 per unit, for aggregate gross proceeds of US$365,270,000.

The Trust also completed its previously disclosed concurrent private placement, issuing an aggregate of 3,580,407 units for aggregate consideration of US$34,730,000.

In total, the Trust issued an aggregate of 40,107,407 units for aggregate gross proceeds of US$400,000,000. Approximately US$292.7 million of the net proceeds of the Offering and the concurrent private placement will be used to acquire an initial portfolio of 18 pharmaceutical royalty assets and related working capital. The remainder of the net proceeds of the Offering will be used to fund future royalty acquisitions and for general purposes.

"We are very pleased with this milestone in our development which will continue the 18-year track record of our manager, DRI Capital, of investing in long-term royalty streams on pharmaceutical products," said Behzad Khosrowshahi, CEO of the Trust. "The pharmaceutical industry is large and growing, with significant R&D requirements. The Trust intends to execute on a strategy to provide financing to advance innovation in the industry and generate stable returns for its investors."

The Trust has granted the underwriters an over-allotment option to purchase up to an additional 5,479,050 units of the Trust at the offering price for additional gross proceeds to the Trust of US$54,790,500 if exercised in full. The over-allotment option can be exercised for a period of 30 days from the closing date of the Offering.

The units of the Trust are listed on the Toronto Stock Exchange in U.S. dollars under the symbol "DHT.U" and in Canadian dollars under the symbol "DHT.UN".

The Offering was made through a syndicate of underwriters co-led by Scotiabank, UBS Securities Canada Inc. and RBC Capital Markets, and including Truist Securities, Inc., BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc. and Canaccord Genuity Corp.

No securities regulatory authority has either approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Trust in any jurisdiction in which such offer, solicitation or sale would be unlawful.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered,  sold or delivered, directly or indirectly, in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.

About DRI Healthcare Trust
DRI Healthcare Trust is an unincorporated open-ended trust governed by the laws of the Province of Ontario, externally managed by its manager, DRI Capital Inc. DRI Healthcare Trust provides unitholders with differentiated exposure to the anticipated growth in the global pharmaceuticals and biotechnology markets. Our business model is focused on managing and growing a diversified portfolio of pharmaceutical royalties to deliver attractive growth in cash royalty receipts over the long term.

Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws, including statements with regard to the size and prospects of the pharmaceutical industry, the use of proceeds by the Trust, the Trust’s business model and growth prospects  and  expectations regarding the ability to generate returns for investors. Forward-looking information involves known and unknown risks and uncertainties, many of which are beyond the Trust’s control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those described under "Risk Factors" in the Trust’s supplemented base PREP prospectus. Forward-looking information is based on management’s beliefs and assumptions and on information currently available to management. Although the forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, you are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this press release is provided as of the date of this press release, and the Trust does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

SOURCE DRI Healthcare Trust

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