TIDMVLG
RNS Number : 4665C
Venture Life Group PLC
21 June 2021
For immediate release
Venture Life Group PLC
("VLG", "Group" or the "Company")
Revolving Credit Facility In Place
Venture Life Group PLC (AIM: VLG), a leader in developing,
manufacturing and commercialising products for the international
self-care market, announces that, as indicated in the Company's RNS
on 7 June 2021 (RNS: 9541A), it has entered into a Revolving Credit
Facility ("RCF") with Santander UK PLC and Silicon Valley Bank.
The RCF provides VLG with available borrowing of up to GBP30
million and is limited to a gross amount of no more than 2.5 times
of the Company's trailing consolidated EBITDA plus the trailing
EBITDA from any acquisitions being made with drawn money. In
addition to the RCF, the Board has available to it an incremental
facility available of a further GBP20 million, subject to certain
conditions, on the same terms as the RCF.
The initial term of the RCF is 3 years with interest to be
charged at 2.5% above the Sterling Overnight Index Average
("SONIA") interest rate benchmark. VLG is able use the funds drawn
under the facility for acquisitions, working capital or other
business uses.
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. As a
result, the Group's Italian term loans of EUR6.0 million as at
31(st) May 2021 will be repaid in the coming months, with short
term liquidity instruments related to working capital finance,
including RIBA invoice discounting, remaining available in
Italy.
An initial draw totalling GBP8 million will be made by VLG in
the coming week from the RCF: GBP2.8 million of this is to
replenish working capital cash reserves used in the acquisition of
BBI Healthcare Limited, and GBP5.2 million to repay the Italian
bank loans, which is a condition of the RCF. The remainder of the
facility will be kept available for future acquisitions, in
addition to the future cash generated in the business moving
forward.
Rob Purdew, Associate Director, Strategic Debt Solutions at
Santander UK, said: "As a high-growth European consumer healthcare
business with a well-executed international strategy, Venture Life
is exactly the type of business that Santander UK is equipped to
support. We're pleased to act as agent and co-ordinator bank to
provide this financial package to the company in support of its
acquisition-led growth strategy and goal to create a broad
portfolio of consumer healthcare brands."
Jon Lavin, Director, Corporate Credit Solutions, at Silicon
Valley Bank said : "We are delighted to support Venture Life Group
with new financing to support the Group's growth strategy. The
company has a strong track record of developing successful consumer
healthcare brands, both in the UK and internationally, and we look
forward to working with management to build on this in the years'
ahead."
Jerry Randall, CEO commented : "I am delighted to announce the
completion of this facility, as I had indicated was expected in our
announcement of the acquisition of BBI Healthcare on 7(th) June
2021. This facility will significantly extend the reach of the cash
we raised from shareholders in December 2020, leveraging the
cashflows of the existing business and providing firepower for
future acquisitions. As a profitable and cash generative business,
it is key to our successful growth that we make use of this
low-cost, non-dilutive funding at sensible levels, to both
supplement shareholder support and minimise dilution. Interest
rates remain at a low level and debt provides an efficient method
to provide some of the funding for our growth.
We have been working with Santander, our main bank in the UK,
and Silicon Valley Bank for some time to put this facility in
place, and I am very pleased with the facilities now available and
the support provided by both banks in getting to this point. I am
sure this will be a long and fruitful partnership, and I would like
to take this opportunity to thank Santander, Silicon Valley Bank
and my colleagues internally for doing an excellent job in
completing this facility. I am also delighted to have such
blue-chip names supporting the growth of the business, which is a
significant validation or our model, our vision and our team.
I would also like to take this opportunity to thank Banco BPM
Spa, Unicredit SpA and Intesa San Paolo Spa for their support of
our business in Italy to date, which has been invaluable in the
growth of the business to this point."
For further information, please contact:
+44 (0) 1344
Venture Life Group PLC 578004
Jerry Randall, Chief Executive Officer
+44 (0) 20 7397
Cenkos Securities plc (Nomad and Joint Broker) 8900
Michael Johnson / Russell Kerr (Sales)
Stephen Keys / Camilla Hume (Corporate Finance)
+44 (0) 20 7496
N+1 Singer (Joint Broker) 3000
Jonathan Dighe (Sales)
Shaun Dobson / Alaina Wong (Corporate Finance)
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, The
Netherlands and Italy, the Group's product portfolio includes some
key products such as the UltraDEX and Dentyl oral care product
ranges, food supplements for maintaining brain function, medical
devices for women's intimate healthcare, fungal infections and
proctology, and dermo-cosmetics for addressing the signs of
ageing.
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 Development & Manufacturing business in Italy,
Biokosmes, the Group also provides development and manufacturing
services to companies in the medical devices and cosmetic
sectors.
Forward-looking Statements
This news release contains forward -- looking information. The
statements are based on reasonable assumptions and expectations of
management and VLG provides no assurance that actual events will
meet management's expectations. In certain cases, forward --
looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although VLG believes the expectations
expressed in such forward -- looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected.
Company website
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by hyperlinks on VLG's website is incorporated in, or forms part
of, this announcement.
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END
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(END) Dow Jones Newswires
June 21, 2021 02:00 ET (06:00 GMT)
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