19 April 2024
VENTURE LIFE GROUP
PLC
("Venture
Life", "VLG" or the "Group")
RCF in Place and New Partner
in the USA
Venture Life Group PLC (AIM: VLG), a
leader in developing, manufacturing and commercialising products
for the international self-care market, announces that, it has, as
indicated in the Company's Final Results RNS on 9 April 2024,
renewed its Revolving Credit Facility ("RCF") with Santander UK PLC
and HSBC Innovation Bank Limited (HSBC Innovation).
The RCF provides VLG with available
borrowing of up to £30 million and is limited to a net amount of no
more than 2.50 times the Company's consolidated EBITDA for the
latest twelve month period, including the trailing EBITDA from any
acquisitions (which temporarily increases to 2.75 times on the same
basis in the 3 months immediately after an acquisition). In
addition, the Group has access to a further £20 million facility,
subject to certain conditions, on the same terms as the
RCF.
The initial term of the RCF is 3 years
and includes a further 1-year extension option, with interest to be
charged at a range of 2.0%-2.85% based on the Group's existing
leverage position above the Sterling Overnight Index Average
("SONIA") interest rate and Euro Interbank Offered Rate (EURIBOR)
benchmark. VLG is able to use the funds drawn under the facility
for acquisitions, working capital or other business
uses.
|
Net
leverage
|
Interest
rate
|
|
<1.0x
|
2.0%
|
|
1.0x-1.5x
|
2.2%
|
|
1.51x-2.0x
|
2.4%
|
|
2.01-2.5x
|
2.6%
|
|
>2.5x
|
2.85%
|
The Board has taken this opportunity
to re-organise the corporate financing policies of the Group in an
optimal manner taking into account the Group's medium and long-term
needs.
Daniel Wells, CFO of VLG commented,
"Santander UK and HSBC Innovation
Bank have been supportive partners to Venture Life Group over the
past 3 years, and we are delighted to complete our refinancing with
them. The teams from across both lenders have been excellent to
work with, and understand our business and the Consumer Healthcare
sector well. We look forward to working with them in future as we
continue to grow and scale our business."
New Partner in
USA
The Company also announces that it has
finalised an exclusive long-term license and distribution deal in
the United States for Gelclair, an FDA-approved oral mucositis
prescription product, with Jaguar Health (NASDAQ:JAGX). This
agreement, spanning 5 years, entails license fees, royalties, and
product revenue payments to the Company.
"We are really pleased to have
partnered Gelclair in the USA, a market where Gelclair has been
present for many years," said Jerry Randall, CEO of VLG. "This new
agreement will ensure the continued supply of Gelclair to US
oncology patients suffering oral mucositis, and generate meaningful
additional revenues for the Company in the future."
For
further information, please contact:
Venture Life Group
PLC
+44 (0) 1344 578004
Jerry Randall, Chief Executive
Officer
Daniel Wells, Chief Financial
Officer
Cavendish Capital Markets Limited (Nomad and
Broker)
+44 (0) 20
7720 0500
Stephen Keys/Camilla Hume (Corporate
Finance)
Michael Johnson
(Sales)
About Venture Life (www.venture-life.com)
Venture Life is an international
consumer self-care company focused on developing, manufacturing and
commercialising products for the global self-care market. With
operations in the UK, Italy, and Sweden, the Group's product
portfolio includes some key products such as the Balance Active
range in the area of women's intimate healthcare, the Earol®
product line in ENT care, the Lift and Glucogel product ranges for
energy and glucose management and hypoglycaemia, the UltraDEX and
Dentyl oral care product ranges, products for fungal infections and
proctology, and dermo-cosmetics for addressing the signs of ageing.
Its products are sold in over 90 countries worldwide.
The products, which are typically
recommended by pharmacists or healthcare practitioners, are
available primarily through pharmacies and grocery multiples. In
the UK and The Netherlands these are supplied direct by the company
to retailers, elsewhere they are supplied by the Group's
international distribution partners.
Through its two Development &
Manufacturing operations in Italy and Sweden, the Group also
provides development and manufacturing services to companies in the
medical devices and cosmetic sectors.