Funding of Ebiox Subsidiary

 

TIDMHCEG 
 
RNS Number : 4170T 
Healthcare Enterprise Group PLC 
05 June 2009 
 

 
 
Healthcare Enterprise Group plc 
("HCEG", "the Company" or "the Group") 
Funding of Ebiox subsidiary 
Healthcare Enterprise Group plc (AIM: HCEG), announces that on 1st June 2009 
it's 95% owned subsidiary Ebiox Limited ("Ebiox") received applications to 
subscribe for shares in Ebiox amounting to GBP700,000 in cash before expenses. 
The new investors will account for approximately 36.8% of the increased share 
capital of Ebiox. Of the total amount subscribed, GBP400,000 (21.1%) has been 
subscribed by interests associated with Mr. Nigel Wray and GBP50,000 (2.6%) has 
been subscribed by Mr. John Honey, Ebiox's Executive Chairman. A further 
GBP250,000 (13.1%) is conditional on shareholder approval of the 
investing company and is expected to complete by the end of June 2009. Mr. Wray 
and Mr. Honey will also be entitled to warrants to subscribe for an additional 
53,333 and 6,667 shares respectively in Ebiox at GBP1.00 per share for 
the period ending 1st June 2012. Mr. Wray will also be joining the board of 
Ebiox as a non executive director. 
 
 
Of the proceeds, the sum of GBP100,000 has been paid to HCEG in the form of 
management fees to fund short term operating costs. The balance of the proceeds 
will leave Ebiox fully funded for the short and medium term. 
 
 
Ebiox has witnessed a surge in demand following the outbreak of swine flu, and 
the Ebiox management, headed by John Honey, has been keen to take advantage of 
the flow of new orders. Accordingly, the Ebiox board considered that the best 
way for the company to raise new funds while its parent HCEG was still 
finalising its own restructuring, was to raise capital directly. It is hoped 
that with this injection of new funds, and the introduction of Mr. Wray to the 
board, Ebiox will be able to seize this opportunity to create additional sales 
and negotiate additional products, such as those which have now been contracted 
to Great Ormond Street Hospital under the Ebiox brand. 
 
 
As set out in the announcement of 29 May 2009, the Group is currently engaged in 
a process of refinancing whereby it is proposed that certain significant 
liabilities, including convertible unsecured loan stock, held in HCEG will be 
converted into a combination of equity in HCEG, shares in the company's 
investment in First Aid Holdings Limited and subsidiaries Ebiox and Reproductive 
Sciences Limited ("RSL"). 
 
 
"In the future, the Group expects to function as an investment holding company 
with a minimal cost base which will be funded through a small-fund raising or 
further realisation of the Group's investments. Notwithstanding the current 
economic climate, we remain convinced that Healthcare Enterprise Group has 
valuable investments in exciting niches of the healthcare market." 
 
 
Whilst this Ebiox funding has provided some additional working capital for the 
Group's immediate needs, discussions continue with a small group of investors to 
raise additional capital for the Group. Whilst these discussions have yet to 
reach a conclusion, the directors remain confident that further funds will be 
raised although there can be no guarantee that such funds will be secured. In 
the event that these discussions are not successfully concluded in the next 
month, the Group's funding position will be such that it will be required to 
consider a range of alternatives including further sales of shares in its 
investee companies. If the Company is unable to raise sufficient cash from such 
sales, the Directors may have no alternative but to consider whether it is 
appropriate for the Group to remain as a going concern. 
 
 
Pursuant to the announcement made on 22 December 2008, the Company's shares 
remain suspended from trading on AIM. 
 
 
Further Enquiries: 
Healthcare Enterprise Group Plc 
Lyndon Gaborit, Executive Deputy Chairman  Tel: + 44 (0)1925 898 201 
www.hcegroup.com 
 
Daniel Stewart & Company Plc 
 
              Tel  [phone] 
Graham Webster/Stewart Dick 
Notes to Editor: 
Healthcare Enterprise Group PLC companies include Ebiox Limited, a specialist 
disinfectant and decontamination company which has a range of proprietary 
products patented and approved for sale in multiple world markets; Reproductive 
Sciences Limited which invests in medical devices product development, 
particularly in the area of women's' health; and investments in healthcare 
products and services. 
Nigel Wray has extensive experience as an investor in both quoted and unquoted 
companies. He is the Chairman of Saracens Rugby Club and British Seafood Group 
Holdings Limited, Non-Executive Director of Prestbury Investment Holdings 
Limited, Dominos UK & IRL PLC, Play Holdings Limited, Networkers International 
Plc, English Wines Group PLC, Seymour Pierce Holdings Limited and several other 
private companies. 
John Honey, Executive Chairman of Ebiox Limited, brings a wealth of experience 
in the disinfectant and decontamination industry as well as senior management 
roles in marketing and general management. John previously served as Senior Vice 
President of Reckitt Benckiser plc, responsible at various times during his 29 
year tenure as executive responsible for Reckitt's global cleaning and 
disinfectant businesses, including Dettol, Lysol and Cilit Bang brands and its 
worldwide over the counter business which included Boots Healthcare 
International (which was acquired for GBP1.9Bn). He retired from Reckitt's in 
2007 to pursue private interests. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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