(Alliance News) - Venture Life Group PLC on Friday said it had renewed its revolving credit facility with Santander UK PLC and HSBC Innovation Bank Ltd.
The RCF facilitates the borrowing of up to GBP30 million for the Berkshire, England-based developer and manufacturer for the self-care market, and is limited to a net amount of no more than 2.5 times the company's consolidated earnings before interest, tax, depreciation and amortisation for the last twelve months.
Venture Life also has access to a further GBP20 million facility, subject to the same terms as the RCF.
The initial term of the RCF is three years, including a further one year extension option, charged at an interest rate between 2.0% and 2.85%.
Venture Life said it will use the funds for acquisitions, working capital and other business uses.
Additionally, the board will re-organise the company's corporate financing policies, for its medium and long-term needs.
The company also announced its finalisation of an exclusive long-term licence and distribution deal for Gelclair, an oral mucositis prescription product, with US-based Jaguar Health Inc.
Venture Life shares were up 3.9% to 39.74 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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Venture Life (VLG)
HSBC Holdings (HSBA)