Refinancing restores Healthcare Enterprise shares
SHARES in the medical research company Healthcare Enterprise Group (HCEG) have been restored today after it agreed a refinancing deal.
The AIM-listed group has been grappling with its finances since last year when its bankers recalled their loans. Its shares were suspended in December after it admitted it could not file its accounts due to ongoing fundraising talks.
Since then it has been funded by loans from shareholders and the sale of certain investments.
Under the new deal, which is subject to shareholder approval, the Warrington-based business has agreed to convert £3.2m of its debts into a combination of equity in HCEG, shares in its subsidiaries Ebiox and Reproductive Sciences, and shares in First Aid Holdings – a business in which HCEG has a 24.9% stake.
In a stock market announcement the group said it expects to function as an investment holding company funded through a further realisation of the group’s investments or a fundraising.
“Notwithstanding the current economic climate, we remain convinced that Healthcare Enterprise Group has valuable investments in exciting niches of the healthcare market,” said the statement.
Earlier this month the business posted its delayed results covering the 16 months to June 2008 which showed a pre-tax loss of £13.3m, and a turnover of £800,000.
Today it reported figures for the six months to December showing a loss of £1.3m on sales of £248,000. The group’s sales came from its Eboix division which specialises in hygiene and decontamination products which has since seen a surge in swine flu-related orders.
The board said it expects to record another loss for the second half of the year.
