Issue of Equity

RNS Number : 6015W

Deltex Medical Group PLC

31 December 2013

 

 

 

Deltex Medical Group plc

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 [e-mail]
Nigel Keen, Chairman
Ewan Phillips, Chief Executive
Paul Mitchell, Finance Director
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

 

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