The proceeds of the SIO facility will provide funds for general working capital and operational costs.
The company will continue with the restructure of its business operations to reduce certain overhead costs and a proposed divestment of the infusion business to capitalise on its growing ADAPT business.
The key terms of the SIO facility are:
12% interest rate compounding monthly; and
One-off $125,000 facility fee, which will be capitalised to the loan balance and repayable at maturity.
If Admedus launches a rights issue while the loan is outstanding, SIO may elect to offset all or part of the outstanding balance against its entitlement and any underwriting commitment.
If shareholder approval is obtained, the outstanding balance may at SIO’s election be converted to ordinary shares in AHZ at the lesser of:
2 cents per share; and
80% of the volume weighted average market price for ordinary shares calculated over 5 trading days before the date on which the shares are to be issued.