Proventec hammers out funding deal
PROVENTEC, the North West specialist provider of steam cleaning and coatings technologies, has hammered out the details of a funding deal with a major shareholder.
The Liverpool company admitted it was facing administration in June because it was unable to pay interest of £600,000 on £15m of unsecured loan notes.
A deal was struck in principle in July involving a £2.5m cash injection, a reduced value and coupon loan note and a significant conversion of debt and loan notes into shares.
The Dutch business InnoConcepts holds 36.2% of the shares in the AIM-listed firm and 75% of the loan notes.
Following the deal Proventec said its term debt will be reduced to £7m and the loan note holders will have an additional 61% of the enlarged share capital of the company. A large proportion of the loan notes will be converted into equity at 57p a share.
Today the company, which has developed new ways of tackling superbugs such as MRSA and C difficile, said £1.5m of the £2.5m has been authorised for release to support the company’s trading and growth.
The balance of £1m will be available to draw down after the agreement has become effective. A general meeting will be convened to approve the transaction. The shares are likely to remain suspended until November.
