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.
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.
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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.
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