Western’s Actions Induce Tender at H&Q Life Sciences

See earlier post Western Investments Dissatisfied with H&Q Life Sciences dated 1/4/11.

On April 25, 2011, certain of the Reporting Persons (“Western”) entered into an Agreement with Hambrecht & Quist Capital Management LLC (“Hambrecht & Quist”), the investment advisor to the Issuer, pursuant to which Hambrecht & Quist agreed to use its reasonable best efforts to cause the Issuer to commence a tender offer for up to 35% of the Shares at a price equal to 98% of the Issuer’s net asset value per Share (the “Tender Offer”) within five business days following the approval of an amendment to the Issuer’s Declaration of Trust, as amended, to remove certain limitations on the Issuer’s Board of Trustees’ authority to cause the Issuer to repurchase its outstanding Shares (the “Amendment”).  The Issuer has scheduled a special meeting of shareholders (the “Special Meeting”) to be held on May 2, 2011 to approve the Amendment.
Subject to the approval of the Amendment, Western agreed to, among other things, (i) withdraw WILLC’s proposal to declassify the Issuer’s Board of Trustees from consideration at the Issuer’s 2011 annual meeting of shareholders (the “Annual Meeting”), (ii) withdraw WIHP’s proposal to declassify the Board of Trustees of H&Q Healthcare Investors (“HQH”) from consideration at HQH’s 2011 annual meeting of shareholders (the “HQH Annual Meeting”), (iii) withdraw WILLC’s nomination of nominees for election at the Annual Meeting and (iv) vote all Shares beneficially owned by Western in accordance with the recommendations of the Board of Trustees of the Issuer and HQH, as the case may be, as set forth in the Issuer’s and HQH’s definitive proxy statements relating to the Special Meeting, the Annual Meeting and the HQH Annual Meeting.


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