HCEG gets green light for debt deal

SHAREHOLDERS of the medical research company Healthcare Enterprise Group (HCEG) have backed a £3.2m debt for equity deal.

The Warrington company, which targets the medical products and disinfectant market, is converting its debts into shares in HCEG and its subsidiaries.

As part of the deal it is issuing 4.3 million new shares and re-organising the company’s existing share capital, consolidating every 250 shares of 0.1p into one new share of 25p.

The company’s deputy chairman Lyndon Gaborit said the move would enable further expansion.

He said: “With its established shareholder base, access to institutional and private funding and its experienced management team, the directors believe that the company is well-placed to expand by acquiring smaller businesses which have good products or services but which lack the critical mass to gain significant market entry.”

HCEG has two main subsidiaries Ebiox, which specialises in hygiene and decontamination products, and Reproductive Sciences which is developing fertility aids.

The business has spent much of the year with its shares suspended as it had sought to reach an agreement on its debts.