New Banking Facility

RNS Number : 9208R

Eco Animal Health Group PLC

11 July 2022

 

11 July 2022

ECO Animal Health Group plc

(''ECO", the "Company" or the "ECO Group") (AIM: EAH)

New Banking Facility

ECO Animal Health Group plc, a leader in the development, registration and marketing of pharmaceutical products for global animal health markets, is pleased to announce that it has signed a new bank facility agreement with its bank, National Westminster Bank plc ("NatWest"). 

The new facility is a Revolving Credit Facility ("RCF") and will provide for drawings of up to £10 million in flexible amounts and repayment periods.  The facility has a term expiring on 30 June 2026.  The interest rate is 1.95% plus the Sterling Overnight Index Average lending rate.  Covenants, comprising customary leverage and interest cover tests, are reported six monthly to NatWest, co-incident with ECO's AIM financial reporting obligations.

The facility is in addition to the Company's pre-existing £5 million overdraft facility.  Pre-existing security arrangements support the new facility.

The RCF will provide structured working capital support.  Whilst it is not intended that the RCF will directly fund any elements of the R&D programme, its existence will ensure that the ECO Group will have the confidence to progress the new product development programme and deal with working capital movements.

Christopher Wilks, Chief Financial Officer of ECO said: "I am very pleased to have signed this facility with NatWest; it will provide the flexibility to fund working capital movements in these uncertain times and allow us to use our core cash generated from operations to fund our exciting R&D projects."

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

For further information please contact:

ECO Animal Health Group plc David Hallas (CEO) Christopher Wilks (CFO)	020 8447 8899
IFC Advisory Graham Herring Zach Cohen	020 3934 6630
Singer Capital Markets (Nominated Adviser & Joint Broker) Mark Taylor George Tzimas	020 7496 3000
Investec (Joint Broker) Gary Clarence Brough Ransom Carlo Spingardi Peel Hunt LLP (Joint Broker) Dr Christopher Golden James Steel	020 7597 5970 020 7418 8900

Equity Developments Hannah Crowe Matt Evans

020 7065 2692

 About ECO Animal Health

ECO Animal Health Group plc researches, develops and commercialises products for livestock. Our business strategy is to generate shareholder value by achieving the maximum sales potential from the existing product portfolio whilst investing in Research and Development ("R&D") for new products, particularly vaccines, and seeking to in-license new products.

 

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