Sinclair Pharma PLC Sinclair announces $5m investment by EW Healthcare (5889F)
February 22 2018 - 2:02AM
UK Regulatory
TIDMSPH
RNS Number : 5889F
Sinclair Pharma PLC
22 February 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014. Upon the publication
of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
Sinclair announces $5 million investment by EW Healthcare
Partners via convertible loan
London, 22 February 2018 Sinclair Pharma plc (AIM:SPH.L)
("Sinclair" or the "Group"), the international aesthetics company,
is pleased to announce a $5 million investment in the Group via the
issue of a $5.0 million convertible loan to EW Healthcare Partners
("EW"). The proceeds of the investment will be used to finance the
one-off payment and acquisition of inventory arising from
termination of the distribution agreement between Sinclair and
ThermiGen LLC as set out in the announcement issued earlier today.
EW is a specialist investor focussed on raqpidly growing healthcare
companies and holds several investments in medical aesthetics.
The total value of the convertible will be $5.0 million and
interest will accrue at 8%, compounded annually, and if not
converted into ordinary shares, will mature no earlier than 1
September 2020. The convertible loan will be secured by way of a
second ranking charge over Sinclair's assets.
Conversion into ordinary shares in Sinclair can occur at any
time from three months after the date of issue and in the event
that the loan is converted into ordinary shares EW have agreed to a
lock-up of six months subject to certain exemptions. The conversion
price is 28.0p, representing a 27% premium to Sinclair's closing
middle market price on 21 February 2018. Assuming the entire $5
million loan is converted into new ordinary shares in Sinclair EW
would be issued a total of 12,800,000 ordinary shares being 2.5% of
the Company's current issued ordinary share capital of 503,768,952
ordinary shares. There is an adjustment mechanism within the loan
agreement such that in the event that Sinclair issues additional
ordinary shares prior to conversion of the loan, EW will still
receive a fixed 2.5% of the Company's then issued share capital at
the time of conversion.
Chris Spooner, CEO of Sinclair, commented: "I am delighted that
we have attracted investment from EW Healthcare Partners, a well
respected investment firm with many years of experience and success
investing in the healthcare industry. We look forward to working
closely with the EW team and leveraging their experience and
relationships within the US aesthetics industry and more
widely."
Ron Eastman, managing director of EW, commented: "We have been
impressed with the significant growth that Sinclair is experiencing
and we look forward to leveraging our experience of successfully
investing in the aesthetics market to help Sinclair enhance its
global potential."
Ends
For further information please contact:
Sinclair Pharma plc Tel: +44 (0) 20 7467
6920
Chris Spooner
Alan Olby
Andy Crane
Peel Hunt LLP (NOMAD and Tel: +44 (0) 20 7418
Joint Broker) 8900
James Steel
Oliver Jackson
RBC Capital Markets (Joint Tel: +44 (0) 20 7653
Broker) 4000
Marcus Jackson
Laura White
Media enquiries
FTI Consulting Tel: +44 (0) 203 727
1000
Ben Atwell
Brett Pollard
Stephanie Cuthbert
Notes to Editors:
About Sinclair Pharma plc - www.sinclairpharma.com
Sinclair Pharma plc is an international company operating in the
fast growth, high gross margin, global aesthetics market. Sinclair
has built a strong portfolio of differentiated, complementary
aesthetics technologies, which are experiencing significant growth,
targeting unmet clinical needs for effective, high quality, longer
duration, natural looking and minimally-invasive treatments.
Sinclair is planning entry to multiple new geographic markets and
line extension launches over the next few years. The Group has an
established sales and marketing presence in the leading EU markets
and Brazil, and a network of international distributors.
About EW Healthcare Partners - www.ewhealthcare.com
EW Healthcare Partners was founded as a focussed healthcare
investor in 1985. The firm has raised $3 billion to date and backed
companies with a combined market capitalisation of over $50
billion, investing in over 150 companies since inception. The EW
Healthcare team of 20 investment professionals has over 500 years
of combined investment experience and this encompasses operational,
strategic, regulatory, financing, R&D and HR matters. EW
Healthcare Partners focus is on revenue-generating companies with
significant growth potential with a policy of actively partnering
portfolio company management teams and leveraging an extensive
network of strong relationships across the healthcare sector
globally.
"Safe Harbor" Statement under the US Private Securities
Litigation Reform Act of 1995: Some or all of the statements in
this document that relate to future plans, expectations, events,
performances and the like are forward--looking statements, as
defined in the US Private Securities Litigation Reform Act of 1995.
Actual results of events could differ materially from those
described in the forward--looking statements due to a variety of
factors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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