Last checked at 31 Dec 2013 07:00
US Loan conversion/Issue of Equity
31 December 2013Deltex Medical Group plc ("Deltex Medical" or the "Company"), the global leader in oesophageal Doppler monitoring ("ODM"), announces that it has issued a total of 2,858,759 new ordinary shares of 1p each in the Company ("New Ordinary Shares") at a price of 13.75 pence per share following conversion of a loan held in the US subsidiary ("The Conversion").
In April 2008, as part of a funding package for expansion in its US subsidiary, Nexus Medical Partners II, L.P ("Nexus") subscribed for 3,367,004 shares in Deltex Medical Group plc and provided an unsecured loan to the Company's US Subsidiary of $518,518. Nexus managed funds on behalf of the State of South Carolina and in order to suit the fund's requirements, the shares were sold in April 2011. Following discussions with Nexus, the Company and Nexus have agreed to convert the loan into 2,858,759 New 1p Ordinary shares in Deltex Medical Group plc at a price of 13.75 pence per share. This is calculated as being the fair value of the loan ($628,927: c£393,000) including accrued interest at the date prior to conversion. The conversion reduces the Company's net debt by c£393,000.
Dr Edwin Snape, a non-executive Director of Deltex Medical, was a principal of Nexus at the time the loan was made and when Nexus disposed of its original equity investment. Dr Snape is now connected to Nexus only as an adviser and is no longer a principal.
Application has been made for these New Ordinary Shares to be admitted to trading on AIM. The shares rank pari passu with the existing issued shares of the Company and dealings are expected to commence on 8 January 2014. Following the issue of these new shares the Company has a total of 170,929,138 ordinary shares of 1p each in issue.
For further information:
Deltex Medical Group plc | 01243 774 837 investorinfo@deltexmedical.com |
Nigel Keen, Chairman |
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Ewan Phillips, Chief Executive |
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Paul Mitchell, Finance Director |
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Nominated Adviser & Broker | |
Arden Partners plc | 020 7614 5900 |
Chris Hardie | |
Financial Public Relations | |
Newgate Threadneedle | 020 7653 9850 |
Graham Herring | |
Caroline Evans-Jones | |
Heather Armstrong |