 |
Welcome
TVM
Clinical Evidence
How to Buy / Clinical Training
Investor Relations
Contact Us
|
|
£2 million funding package agreed for expansion of US and German operations 18 April 2008 Deltex Medical Group plc ("Deltex Medical"), the UK's leading haemodynamic monitoring company, today announces that it has secured £2.0 million of new finance to fund expansion of its sales and marketing operations in the USA and Germany. Deltex Medical announced its preliminary results for the year ended 31 December 2007 on 7 April 2008 and stated that it had accepted an irrevocable undertaking from Nexus Medical Partners II, LP ('Nexus') to subscribe for 3,030,303 ordinary shares of 1p each at a price of 22.0p per share. Since then the Company has continued its discussions both with Nexus and with Medicis Capital Partners GmbH ('Medicis'), a German affiliate of Nexus. As a result the Company has accepted further irrevocable undertakings from Nexus to subscribe for an additional 336,701 new ordinary shares of 1p each at 22.0p per share (increasing their total subscription to 3,367,004 shares) and from Medicis to subscribe for 3,469,388 new ordinary shares of 1p each at 24.5 p per share. These undertakings to subscribe for a total of 6,836,392 new ordinary shares of 1p each (the "New Ordinary Shares") at 22.0p and 24.5p to raise £1,590,741 before expenses are subject to approval by shareholders at the Company's forthcoming Annual General Meeting and assumes no material adverse changes in the Company's business prior to the new ordinary shares being issued. Ed Snape, a non-executive director of Deltex Medical, is also a principal of Nexus Medical Partners. The New Ordinary Shares will rank pari passu with the existing issued shares of the Company. Following the issue of the New Ordinary Shares the Company will have a total of 99,738,045 ordinary shares in issue. This total includes an allotment of 413,746 new ordinary shares which are also subject to approval at the next general meeting of the Company as announced on 25 January 2008. Application has been made for these shares to be admitted to trading on AIM and dealings are expected to commence on 14 May 2008. In addition to their investment in New Ordinary Shares, Nexus has agreed to lend approximately £259,259 to the Company's US subsidiary by way of an unsecured loan note repayable after five years. Interest on the loan note is to be charged at 4% per annum with all interest rolling up for settlement on redemption. In addition to their investment in New Ordinary Shares, Medicis has agreed to lend approximately £150,000 to the Company's German subsidiary by way of an unsecured loan note repayable after five years. Interest on the loan note is to be charged at 6% per annum with all interest rolling up for settlement on redemption. The unsecured loan from Nexus will be denominated in US dollars, with the loan from Medicis in Euros and the exact amounts will be such that Nexus's total new investment in Deltex Medical will be $2,000,000 and Medicis's €1,250,000 on the date of investment. The total funds from Nexus and Medicis to be invested are specifically for use in expanding the US and German markets respectively, including the hiring of additional management and field staff in key locations to manage and support the growing demand for the Company's products. The US funds are managed by Nexus on behalf of a US State Government to promote economic development. Deltex Medical's Chief Executive, Andy Hill commented: "The USA and Germany are two of the largest potential markets for the CardioQ™ and we have established solid bases in each of them over the last few years. This new funding package is on terms designed to attract us to develop our US and German operations and allows us to push forward more quickly with our focused expansion plans." For further information, please contact: Deltex Medical Group plc 01243 774 837 Gavin Anderson & Company 020 7554 1400 Charles Stanley Securities 020 7149 6000
|