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Healthcare Enterprise Group PLC (Aim: HCEG, “HCEG” or “the Company”), the international healthcare products group, announces that it has entered into an agreement with the Headstart Group of funds ("Headstart") under which Headstart will make available to the Company a committed share finance facility of up to £2,000,000 (the "Headstart Facility").
Headstart has agreed, when called upon by HCEG, to subscribe for new ordinary shares in the capital of the Company ("Ordinary Shares") to the value of up to, in aggregate, £2,000,000 subject to the Company having sufficient shareholder authorisation for the issue of those shares. The Headstart Facility is available at any time up to 4 September 2008 and is capable of being drawn down by the Company in increments of up to £100,000.
The Headstart Facility is in addition to the Company's invoice discounting facility of up to £2,500,000 with Barclays Bank. The Board believes that anticipated cash flows from operations, together with the available bank facility and the Headstart Facility, will be sufficient to finance the Group's operations for the foreseeable future.
In consideration for Headstart making available the Headstart Facility, the Company has agreed to pay Headstart a one-off fee in two equal annual instalments payable in cash or by the issue of Ordinary Shares. The Company has elected to satisfy the first instalment of this fee by issuing 659,341 Ordinary Shares to Headstart.
In addition, the Company has issued warrants to Headstart granting the right to subscribe for up to 500,000 Ordinary Shares at a subscription price of 5p per share. Such warrants are exercisable at any time on or before 4th September 2010.
Application has been made for the Ordinary Shares to be admitted to AIM. The shares are expected to start trading on 11 September 2006, bringing the issued share capital of the Company to 189,723,334.
Enquiries:
Healthcare Enterprise Group PLC
Lyndon Gaborit, Executive Deputy Chairman
020 7351 7500
College Hill
Adrian Duffield
Corinna Dorward
020 7457 2020
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