Deltex Medical Group Plc Successful Placing, Subscription and Offer

Deltex Medical Group Plc Successful Placing, Subscription and Offer

Deltex Medical Group plc

(“Deltex” or the “Company”)

 Placing by way of an accelerated bookbuild and proposed Subscription to raise £1.75 million

and

Offer to Shareholders to raise up to £350,000

 Deltex (AIM: DEMG), announces its intention to undertake an equity placement of £1,064,500 (the “Placing“). The Placing will be effected by way of an accelerated bookbuild, which will be launched immediately following this announcement at a minimum price of 1.25p. Certain other investors are proposing to invest £685,500 in the Company, by way of a subscription at the Issue Price (the “Subscription“).

Arden Partners plc (“Arden“) and Turner Pope Investments (TPI) Ltd (“TPI“) are acting as joint brokers (together, the “Joint Brokers“) in connection with the Placing.

1.   Placing and Subscription

The proceeds of the Placing and the Subscription will be used to strengthen the Company’s balance sheet and for general working capital purposes.

2.   Offer to Shareholders

In addition to the Placing and the Subscription, the Company intends to provide all Qualifying Participants with the opportunity to subscribe for new Ordinary Shares (“Offer Shares“) at the Issue Price, to raise up to £350,000 before expenses (“Offer“).

3.   Variations to the terms of the £1.125 million nominal Loan Notes issued 2016

The holders of the Loan Notes (with the exception of a holder of £25,000 nominal amount) have conditionally agreed (subject, inter alia, to Admission) to defer the redemption date of 26 February 2019 by two years to 26 February 2021. As a result, the Company has agreed, subject to the same conditions, to reduce the conversion price from 6p to 4p to reflect the dilutive effect of the Capital Raising. The impact of the Convertible Loan Note Arrangements is that the maximum number of Ordinary Shares to be issued under the Loan Notes will increase from 18.75 million to 27.50 million. The £25,000 nominal amount holding referred to above will be redeemed with the consent of the other holders.

4.   General Meeting

To enable the Capital Raising to take place and to authorise the issue of the additional Ordinary Shares on conversion of the Loan Notes under the Convertible Loan Note Arrangements, a General Meeting will be convened for 9 February 2018 at which the Resolution will be proposed to enable the Proposals to proceed.

Expected timetable:

2018

Announcement of the Placing and Bookbuild commences

23 January

Dispatch of the Circular, Application Form and Form of Proxy

 24 January

Latest time and date for receipt of completed Forms of Proxy and receipt of electronic proxy appointments via the CREST system for the General Meeting

10.00 a.m. on 7 February

Latest time for receipt of applications under the Offer

12.00 p.m. on 7 February

General Meeting

10.00 a.m. on 9 February

Announcement of results of the General Meeting and the Offer

9 February

Admission and commencement of dealings in the New Ordinary Shares and any Offer Shares on AIM and CREST accounts expected to be credited for the New Ordinary Shares and any Offer Shares

8.00 a.m. on 12 February

Latest date for dispatch of share certificates in respect of the Placing Shares, the Subscription Shares and the Offer Shares

by 23 February

Each of the times and dates above refer to London time and are subject to change by the Company and/or the Joint Brokers. Any such change will be notified to Shareholders by an announcement on a Regulatory Information Service. The Circular will contain further details of the expected timetable for the Placing, the Offer, the General Meeting and admission of the New Ordinary Shares and any Offer Shares.

RISK WARNING

The value of shares and the income from them may go down as well as up and you may not get back the money you invested. AIM companies can pose higher risks and it should not be assumed that the value of investments will always rise. Past performance is not a reliable indicator of future results and any investment in shares carries the risk that all or some of the capital invested might be lost. You should ensure that you have sought independent advice where required and have the financial capacity to bear the risk, only ever investing money you can afford to lose.

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