REG - Venture Life Group - RCF in Place and New Partner in the USA

Venture LifeAnnouncement

19/04/2024 07:00

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RNS Number : 2507L  Venture Life Group PLC  19 April 2024

19 April 2024

 

VENTURE LIFE GROUP PLC

 

("Venture Life", "VLG" or the "Group")

 

RCF in Place and New Partner in the USA

 

Venture Life Group PLC (AIM: VLG), a leader in developing, manufacturing and
commercialising products for the international self-care market, announces
that, it has, as indicated in the Company's Final Results RNS on 9 April 2024,
renewed its Revolving Credit Facility ("RCF") with Santander UK PLC and HSBC
Innovation Bank Limited (HSBC Innovation).

The RCF provides VLG with available borrowing of up to £30 million and is
limited to a net amount of no more than 2.50 times the Company's consolidated
EBITDA for the latest twelve month period, including the trailing EBITDA from
any acquisitions (which temporarily increases to 2.75 times on the same basis
in the 3 months immediately after an acquisition). In addition, the Group has
access to a further £20 million facility, subject to certain conditions, on
the same terms as the RCF.

The initial term of the RCF is 3 years and includes a further 1-year extension
option, with interest to be charged at a range of 2.0%-2.85% based on the
Group's existing leverage position above the Sterling Overnight Index Average
("SONIA") interest rate and Euro Interbank Offered Rate (EURIBOR) benchmark.
VLG is able to use the funds drawn under the facility for acquisitions,
working capital or other business uses.

 Net leverage  Interest rate
 <1.0x         2.0%
 1.0x-1.5x     2.2%
 1.51x-2.0x    2.4%
 2.01-2.5x     2.6%
 >2.5x         2.85%

 

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.

Daniel Wells, CFO of VLG commented, "Santander UK and HSBC Innovation Bank
have been supportive partners to Venture Life Group over the past 3 years, and
we are delighted to complete our refinancing with them. The teams from across
both lenders have been excellent to work with, and understand our business and
the Consumer Healthcare sector well. We look forward to working with them in
future as we continue to grow and scale our business."

New Partner in USA

The Company also announces that it has finalised an exclusive long-term
license and distribution deal in the United States for Gelclair, an
FDA-approved oral mucositis prescription product, with Jaguar Health
(NASDAQ:JAGX). This agreement, spanning 5 years, entails license fees,
royalties, and product revenue payments to the Company.

"We are really pleased to have partnered Gelclair in the USA, a market where
Gelclair has been present for many years," said Jerry Randall, CEO of VLG.
"This new agreement will ensure the continued supply of Gelclair to US
oncology patients suffering oral mucositis, and generate meaningful additional
revenues for the Company in the future."

 

For further information, please contact:

 

Venture Life Group
PLC
                +44 (0) 1344 578004

 

Jerry Randall, Chief Executive Officer

Daniel Wells, Chief Financial Officer

 

Cavendish Capital Markets Limited (Nomad and
Broker)
          +44 (0) 20 7720 0500

 

Stephen Keys/Camilla Hume (Corporate Finance)

Michael Johnson (Sales)

 

About Venture Life (www.venture-life.com (http://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, Italy, and Sweden, the Group's
product portfolio includes some key products such as the Balance Active range
in the area of women's intimate healthcare, the Earol® product line in ENT
care, the Lift and Glucogel product ranges for energy and glucose management
and hypoglycaemia, the UltraDEX and Dentyl oral care product ranges, products
for fungal infections and proctology, and dermo-cosmetics for addressing the
signs of ageing. Its products are sold in over 90 countries worldwide.

 

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 two Development & Manufacturing operations in Italy and
Sweden, the Group also provides development and manufacturing services to
companies in the medical devices and cosmetic sectors.

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