3m Equity Purchase Agreement

 

TIDMWREN 
 
RNS Number : 3450D 
Wren Extra Care Group PLC 
01 December 2009 
 

 
 
 
 
 
 
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| FOR RELEASE             |          07:00          |       1st December 2009 | 
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WREN EXTRA CARE GROUP PLC (AIM: WREN) 
("Wren" or the "Group") 
 
 
Wren Extra Care Group Plc, the AIM listed provider of retirement living, through 
a range of Extra Care and other services for the independent elderly 
 
 
 
 
GBP3m Equity Purchase Agreement 
 
 
Company secures access to additional capital as it moves ExtraCare development 
programme to the next stage 
 
 
 
 
Wren Extra Care Group Plc, an AIM listed provider of retirement living, through 
a range of Extra Care and other services for the independent elderly, is pleased 
to announce that it has today entered into a GBP3m Equity Purchase Agreement 
Facility ("EPA Facility") with Brittany Capital Management Ltd, a Bahamas-based 
fund advised by Southridge LLC (the "Investor"). The EPA Facility allows Wren, 
at its own discretion, to raise up to GBP3 million of equity capital in 
drawdowns over a three year period. 
 
 
Pursuant to each cash drawdown, new ordinary shares of 10p each will be issued 
by Wren to the Investor at a discount of approximately 10 per cent. to the 
market price prior to drawdown. The maximum size of a drawdown is GBP100,000 or, 
if lower, an amount equal to 50 per cent. of the value of average trading volume 
in Wren shares over the ten trading days prior to drawdown. Since the use of the 
EPA facility is entirely at Wren's discretion, the Company can control the 
timing, size and pricing levels for any drawdown and is not obliged to utilise 
the EPA Facility. 
 
 
The Group now has a pipeline of 177 units with consent following the recent 
granting of planning consent for 50 'Extra Care' units in Wallington, Surrey. 
Securing access to this additional source of capital is timely as Wren finalises 
plans to move to the next stage in the development and completion of its 
ExtraCare pipeline. 
 
 
Before the first drawdown under the EPA Facility, the Company is to issue 
500,000 warrants each to subscribe for one new ordinary share at a price of 10p 
per share ("Warrants") to the Investor. The Warrants will be exercisable at any 
time during the subsequent five years and will not be admitted to trading on any 
market. 
 
 
Paul Treadaway, Chief Executive Officer and Founder, of Wren Extra Care Group 
plc stated: 
 
 
"We are extremely pleased to have attracted a new institutional investor to the 
Wren growth story, particularly so given the selectiveness of investors in the 
current environment. 
 
 
Wren's goal in securing the EPA Facility is to have in place a facility that 
will enable the Group to raise capital efficiently at higher valuations, as it 
moves its ExtraCare development programme on to the next stage and communicates 
positive progress. Having observed the successful use of the EPA facility by a 
number of other AIM companies, we are confident that this facility will provide 
a useful funding instrument for Wren". 
 
 
Stephen Hicks, Chairman of Southridge LLC, added: 
"Southridge's investment philosophy is focused on finding well run and exciting 
business opportunities globally. Accordingly we are delighted to announce this 
relationship with Wren Extra Care Group Plc. We look to provide our portfolio 
companies with a wide array of financial services including the ability to raise 
capital at their behest on preferential terms. We believe we have accomplished 
this goal through the EPA Facility, which will allow Wren to continue to execute 
their strategy in what is clearly an attractive and high growth space in the 
UK." 
 
 
-ENDS- 
 
 
Enquiries: 
 
 
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| Wren Homes Group plc                 |                                 | 
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| Paul Treadaway, CEO                  | Tel: [phone]              | 
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| www.wrenhomesplc.co.uk               |                                 | 
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|                                      |                                 | 
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| Shore Capital (Nominated Adviser)    |                                 | 
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| Pascal Keane                         | Tel: [phone]              | 
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|                                      |                                 | 
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| Peckwater PR                         |                                 | 
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| Tarquin Edwards                      | Tel: [phone]              | 
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Notes to Editors: 
Southridge LLC was founded in 1996 and is headquartered in Connecticut and New 
York in the US. Southridge Asset Management is an SEC registered Investment 
Advisor and offers a number of investment funds in areas such as structured 
finance, quantitive method and asset-based lending including Southridge Partners 
LP, Double Alpha Group and Southridge Real Estate Partners. Southridge 
Investment Group LLC is also SEC registered and offers a full service brokerage 
business including corporate finance, fixed income and institutional sales and 
credit/structured products. 
 
 
Funds advised by Southridge LLC have previously provided similar facilities to 
other AIM companies and in aggregate have provided over $1.7 billion in capital 
to growing companies in the United States and throughout the world. 
 
 
For further information please visit www.southridgellc.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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