On March 31, 2008, H&Q Life Sciences Investors paid a stock distribution of $0.31 per share. Of the eligible shares, 51% opted to receive stock. The new shares were issued at a share price of $11.53 and 20,596,117 shares are now outstanding.
This payment of $0.31 per share in capital gains represents a quarterly distribution to shareholders of 2% of net asset value per share at quarter-end in accordance with the Fund's previously announced fixed distribution policy. It is the intention of the Fund to use net realized capital gains when making quarterly distributions, however this distribution policy would result in a return of capital to shareholders if the amount of the distribution exceeds the Fund's net investment income and realized capital gains. As of the record date, it is estimated that this distribution is derived from long-term capital gains. This estimate is based on earnings and net capital gains as of the record date. The actual composition of the distribution may change based on the Fund’s investment activity through December 31, 2008. Shareholders will receive a Form 1099 notifying them regarding the source of all distributions for the year early in 2009.
Since the Fund’s inception on May 8, 1992, the Fund’s net asset value per share has ranged from a high of $44.80 to a low of $9.98 (unadjusted for capital gains of $20.63). The market price per share has ranged from a high of $41.06 to a low of $8.13. The stock price to net asset value premium has been as high as 13.7% and the discount as wide as 29.9%. At the close of the NYSE on March 31, 2008 the Fund’s net asset value was $13.62 per share and its share price was $11.81, representing a 13.29% discount to net asset value.
H&Q Life Sciences Investors (NYSE: HQL) is a closed-end fund that invests in public and private companies in the life sciences industries. Hambrecht & Quist Capital Management LLC, based in Boston, serves as Investment Adviser to the Fund. Shares of the Fund can be purchased on the New York Stock Exchange through any securities broker.
For additional information, please visit www.hqcm.com or call (617) 772-8500.
Contacts:
617-772-8500
www.hqcm.com
