Financing & Re Directorate
March 28 2008 - 11:29AM
UK Regulatory
RNS Number:0695R
Biocare Solutions PLC
28 March 2008
Biocare Solutions plc ("Biocare" or the "Company")
Financing Update and Resignation of Director
Financing Update
Biocare, the developer, manufacturer and vendor of effective natural household
cleaning and laundry products, announces that further to the press release made
on 13 March 2008, the Company has today issued �653,000 of loan notes for cash
at par to RAB Special Situations (Master) Fund Limited ("RAB"), a fund managed
by RAB Capital plc and a substantial shareholder in the Company.
This loan note issue has been made as part of a refinancing and extension of
existing loan notes issued to RAB and allows for additional tranches of loan
notes to be drawn down before 30 June 2008 up to an aggregate of �547,000. RAB
will receive a commitment fee of ten per cent. of any additional loan notes
drawn down, to be satisfied by the issue of further Loan Notes.
In addition, �219,390 of interest due on existing loan notes issued to RAB, a
commitment fee of �65,300 (being ten per cent. of the extended facility) and
RAB's costs have been satisfied by the issue of additional loan notes to RAB,
which together with the existing loan notes of �1,890,500 and the �653,000 of
loan notes issued today will result in the total principal amount of the loan
notes issued to RAB being �3,457,390 (the "Loan Notes").
The Company continues its efforts to seek additional funds and the Board is
reviewing a combination of equity and debt raising solutions to secure the
Company's long term future. A further announcement will be made as and when
appropriate in this regard.
The Loan Notes bear interest at the rate of two per cent. per calendar month and
are repayable by 30 June 2008. Interest accrues on the Loan Notes from (and
including) 1 April 2008 and is capitalised monthly.
The Company has agreed to secure the Loan Notes by 18 April 2008 by a fixed and
floating charge over the assets of the Company and its subsidiaries. The Loan
Notes may be prepaid by the Company for cash at par and, subject to the
relevant consents, waivers and shareholder approvals being obtained, are
convertible at RAB's option into ordinary shares in the Company at a conversion
price which is the lesser of (a) 3.13 pence per ordinary share being the closing
mid market price on 27 March 2008; and (b) the issue price of any future equity
fundraising.
The subscription by RAB is considered by the Board to be critical to the future
of the Company. Without such funds, it is unlikely that the Company would have
sufficient working capital over the coming months unless alternative financing
arrangements were available to the Company. The Board does not believe that such
alternative arrangements could be found in the time available. Consequently the
subscription by RAB represents, in the view of the Board, the most efficient
and certain route to raising short term working capital.
The loan by RAB to the Company is a related party transaction as defined in the
AIM Rules for Companies. The Directors of the Company (consider the terms of
the loans to be on normal commercial terms and), having consulted the Company's
nominated adviser, consider the terms of the Loan Notes to be fair and
reasonable insofar as the Company's shareholders are concerned. In reaching its
opinion KBC Peel Hunt has had regard to the financial position of the Company
and has relied on the Directors' commercial assessment.
Director Resignation
The Board also announces today the resignation of Tony Higson as a Director of
the Company. For family reasons he intends to base himself in South East Asia
where he will continue to work on an ad hoc basis for the Company in developing
specific market opportunities in that region as well as Australasia.
Enquiries:
Biocare Solutions plc 020 7448 5029
Stuart Anderson, Executive Chairman
Martin Shelley, Finance Director
SPA Way 07768 991 096
James Poole (Public Relations)
KBC Peel Hunt, (Nominated Adviser and Broker) 020 7418 8850
Richard Kauffer
Deon Veldtman
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEWFIASASEED
Biocare (LSE:BSN)
Historical Stock Chart
From Jul 2024 to Aug 2024
Biocare (LSE:BSN)
Historical Stock Chart
From Aug 2023 to Aug 2024