Balcatta-headquartered pharmaceutical, consumable and medical products provider Advance Healthcare Group Ltd today announced it had secured a $10 million working capital facility.
The facility will be provided via a convertible note from Hawkesbridge Private Equity.
Hawkesbridge manages $100 million in private equity funds for institutional investors and invests in capital expansion opportunities, and the facility provided to AHG is seen as a vote of confidence in the potential growth of AHG's underlying business.
Hawkesbridge is already the largest shareholder in AHG and proposes to significantly increase that shareholding.
Under the terms of the arrangement, Hawkesbridge will provide an initial loan facility of $7.5 million.
To date, AHG has already drawn $5.5 million of this facility, with the balance to be made available when security documentation has been signed.
A further $2.5 million convertible note drawdown facility will become available subject to obtaining the necessary shareholder approvals and satisfying other conditions.
Under the terms of the arrangement, Hawkesbridge will be entitled to two seats on AHG's board.
Also, AHG has recently appointed a new chief executive.
Ken Atkinson, formerly a senior manager of Australian Pharmaceutical Industries Ltd, has taken on the role, replacing Adrian Loader in February this year.
Mr Loader will become a director of AHG.
"We are very fortunate to have gained a CEO with Ken's extensive experience from within the medical products distribution industry. Ken's general management expertise and all-round skills embrace the disciplines that are vital for our business development," AHG's Chairman, Mr Peter Woods, said.
