Healthcare Enterprise Group has secured additional funding for its disinfectant and decontamination subsidiary.
The company owned 95% of decontamination products supplier Ebiox prior to the cash raising but this will be significantly diluted. The new investors, including Nigel Wray who will join the Ebiox board, will own 36.8% of Ebiox in return for their £700,000 subscription. They also get 53,333 warrants to subscribe for more shares at 100p each.
Healthcare Enterprise will receive £100,000 of the cash in payment of its management fees but it still needs to raise additional cash for itself.
Healthcare Enterprise’s stake in Ebiox will be further diluted as part of its own refinancing. That needs to be completed in the next month or the company will have to start selling some of its stakes. The company is turning into an investment holding company with a minimal overhead base.
The shares were suspended on 22 December 2008 at 0.36p a share, which values the company at £1.58m. The interim figures need to be published before the suspension is lifted and the refinancing will probably have to be completed. The six month suspension limit is up on 22 June.
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