RNS Number:7465J
Healthcare Enterprise Group PLC
12 December 2007

12 December 2007

Healthcare Enterprise Group PLC

Issue of Secured Loan Notes with Warrants attaching to raise �0.5 million

Healthcare Enterprise Group PLC ("HCEG", "the Company" or "the Group", AIM:
HCEG), the international healthcare products group, announces that it has made
arrangements to raise �0.5 million (before expenses) by way of an issue of
secured loan notes (the "Issue") to provide additional working capital for the
Group.

Issue

Ludgate Investments Limited ("Ludgate"), which has acted as placing agent for
the Company, has received irrevocable commitments from investors in respect of
the �500,000 Fixed Rate Secured Loan Notes (the "Loan Notes"). The Loan Notes,
which are to be secured by the grant of a floating charge over the assets of
HCEG, pay interest at the rate of 8 per cent. per annum payable semi-annually on
30 June and 31 December in each year, with the first payment covering the period
to 30 June 2008. The Loan Notes can be repaid at any time if the Company and the
holders of the Loan Notes ("Noteholders") so agree but are in any event
redeemable at par together with accrued interest by the Company on 31st December
2008. The Issue is conditional upon the execution of the agreed security
documentation.

In addition, subject to the shareholders of the Company passing the resolutions
to be proposed at a general meeting of the Company by the requisite majority
which are required to effect, inter alia, a capital reorganisation of the
Company (the "Resolutions"), Noteholders will receive warrants to subscribe for
100 ordinary shares in the Company ("Shares") at 1 penny per Share on the basis
of 100 warrants for every �1 of Loan Notes ("Warrants"). Subject to the passing
of the proposed Resolutions, Warrants over 50,000,000 shares will be issued.

The Warrants, if granted, will be capable of being exercised at any time up to
31 December 2008.

Investors

Investors in the Issue include Nigel Wray, who was a director of the Company in
the last 12 months. Mr Wray has subscribed for �150,000 of Loan Notes in the
Issue and will receive 15,000,000 Warrants assuming the grant of the Warrants is
approved by the shareholders of the Company. Assuming full conversion of the
Convertible 8% Unsecured Loan Stock announced by the Company as part of the
refinancing package on 26th October 2007 (the "Loan Stock") and assuming the
exercise of all of the Warrants, his total equity holding in the Company will be
80,199,836 ordinary shares representing 16.48% of the enlarged share capital
(assuming no further issues by that time).

Further, John Gunn and associated parties have subscribed for �60,000 of Loan
Notes in the Issue and will receive 6,000,000 Warrants assuming the grant of the
Warrants is approved by the shareholders of the Company.  The Directors intend
to appoint Mr Gunn to the Board at the next general meeting of the Company.
Assuming full conversion of the Loan Stock and the exercise of all of the
Warrants, John Gunn's and his associated parties' total equity holding in the
Company will be 50,000,000 ordinary shares representing 10.27% of the enlarged
share capital (assuming no further issues by that time).  An announcement in
accordance with the AIM Rules will be made once this appointment is approved and
implemented.

Ludgate, a company of which John Gunn is a director, has subscribed for �150,000
of Loan Notes in the Issue and will receive 15 million Warrants. Assuming full
conversion of the Loan Stock and the exercise of all of the Warrants, Ludgate's
total equity holding in the Company will be 15,000,000 ordinary shares
representing 3.08% of the enlarged share capital (assuming no further issues by
that time).

The fees and expenses of the Issue are expected to be approximately �40,000
(excluding any value added tax) and will be borne out of the proceeds of the
refinancing.

The independent Directors, Mark Tompkins and Lyndon Gaborit, consider having
consulted with Numis, that the terms of the Issue and the grant of Warrants (if
so approved by the shareholders of the Company) are fair and reasonable insofar
as the shareholders of the Company are concerned.


Contacts:

Healthcare Enterprise Group PLC                          +44 (0)1925 898 200
Mark Tompkins, Chairman
Lyndon Gaborit, Executive Deputy Chairman

Numis Securities                                         +44 (0) 20 7260 1000
David Poutney

College Hill                                             +44(0)2074572020
Adrian Duffield/Jon Davies



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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