Ultrasis enters financing arrangement with existing shareholder

Ultrasis, a provider of interactive healthcare products, has entered into a financing arrangement with an 'existing significant shareholder', Paul Bell, involving a combination of loan facilities and a subscription of ordinary shares.

By MoneyWeek

published 29 January 2013

in Features

Under the agreement, 178.57m shares will be issued to Fitel on behalf of Bell at 0.28p per share, raising £0.5m.

The transaction will take Bell's stake in the company to 19.64% of the issued share capital, equal to around 334.03m shares.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

He will also make available two loan facilities to the company; the first is a convertible loan of £0.35m and the second is a term loan of £2.0m.

According to the agreement, the company is entitled to drawdown funds up to a maximum of £1.0m in any 12-month rolling period, and the amount of each individual drawdown must be a multiple of £10,000.

The outstanding drawn down amount will bear an interest rate of 4.0% per annum.

Furthermore, Bell has proposed the appointment of an additional non-executive director, expected to be Daniel Bate, who holds a number of directorships with W.H. Ireland and whose appointment will be effective on February 14th 2013.

The share price rose 23.21% to 0.34p by 15:25.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.