REG - Eco Animal Health Gp - New Banking Facility

ECO Animal HealthAnnouncement

11/07/2022 07:00

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RNS Number : 9208R  Eco Animal Health Group PLC  11 July 2022

11 July 2022

ECO Animal Health Group plc

(''ECO", the "Company" or the "ECO Group") (AIM: EAH)

New Banking Facility

ECO Animal Health Group plc, a leader in the development, registration and
marketing of pharmaceutical products for global animal health markets, is
pleased to announce that it has signed a new bank facility agreement with its
bank, National Westminster Bank plc ("NatWest").

The new facility is a Revolving Credit Facility ("RCF") and will provide for
drawings of up to £10 million in flexible amounts and repayment periods.
The facility has a term expiring on 30 June 2026.  The interest rate is 1.95%
plus the Sterling Overnight Index Average lending rate.  Covenants,
comprising customary leverage and interest cover tests, are reported six
monthly to NatWest, co-incident with ECO's AIM financial reporting
obligations.

The facility is in addition to the Company's pre-existing £5 million
overdraft facility.  Pre-existing security arrangements support the new
facility.

The RCF will provide structured working capital support.  Whilst it is not
intended that the RCF will directly fund any elements of the R&D
programme, its existence will ensure that the ECO Group will have the
confidence to progress the new product development programme and deal with
working capital movements.

Christopher Wilks, Chief Financial Officer of ECO said: "I am very pleased to
have signed this facility with NatWest; it will provide the flexibility to
fund working capital movements in these uncertain times and allow us to use
our core cash generated from operations to fund our exciting R&D
projects."

The information contained within this announcement is deemed by the Group to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR") as it forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via a Regulatory Information Service ("RIS"), this inside
information is now considered to be in the public domain.

For further information please contact:

 ECO Animal Health Group plc                                     020 8447 8899

 David Hallas (CEO)

 Christopher Wilks (CFO)

 IFC Advisory                                                    020 3934 6630

 Graham Herring

 Zach Cohen

 Singer Capital Markets (Nominated Adviser & Joint Broker)       020 7496 3000

 Mark Taylor

 George Tzimas

 Investec (Joint Broker)                                         020 7597 5970

 Gary Clarence

 Brough Ransom

 Carlo Spingardi

 Peel Hunt LLP (Joint Broker)                                    020 7418 8900

 Dr Christopher Golden

 James Steel

 

 Equity Developments  020 7065 2692

 Hannah Crowe

 Matt Evans

 

 About ECO Animal Health

ECO Animal Health Group plc researches, develops and commercialises products
for livestock. Our business strategy is to generate shareholder value by
achieving the maximum sales potential from the existing product portfolio
whilst investing in Research and Development ("R&D") for new products,
particularly vaccines, and seeking to in-license new products.

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