Issue of loan notes

RNS Number : 6824P

AorTech International PLC

26 October 2012

 

AorTech International plc ("AorTech")

Issue of Loan Notes

AorTech announces that it has created £1,250,000 of Secured Loan Notes ("the Notes") and today issued £1,100,000 of the Notes to existing investors including certain Directors (or members of their families). The Notes are repayable on or before 1 October 2013. The Notes do not bear any interest but are subject to a redemption premium of 100 per cent of the nominal value of the Notes if redemption is made prior to 31 March 2013 and 150 per cent. thereafter. The Notes attract an additional redemption premium of 15 per cent. of the equity value on a change of control of AorTech, 15 per cent. of the value of a sale of any of its intellectual property rights, and 15 per cent. of the value of any settlement of the current dispute with St. Jude Medical or restructuring of the License and Supply Agreement with St. Jude Medical. The Notes are secured by a floating charge over all of AorTech's assets.

The subscriptions by Bill Brown, Eddie McDaid and Frank Maguire (or members of their families) and Active Capital Trust PLC which amount to, in aggregate, £270,000, are deemed related party transactions for the purposes of Rule 13 of the AIM Rules. The Directors of AorTech (excluding Bill Brown, Eddie McDaid and Frank Maguire) consider, having consulted with finnCap Limited, that the terms of the transaction are fair and reasonable so far as shareholders are concerned.

Enquiries:

AorTech International plc

Bill Brown, Chairman

Tel: [phone]

finnCap

Stuart Andrews/Rose Herbert
finnCap as Nominated Adviser
Tel: [phone]

 

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