11th Aug 2005 07:02
LiDCO Group Plc11 August 2005 For immediate release 11 August 2005 LiDCO Group PLC (the "Company") US$2 million financing agreed for sales expansion following additional regulatory approvals LiDCO Group Plc, the UK-based AIM-traded cardiovascular monitoring company ispleased to announce that it has entered into a US$2 million three year securedrevolving convertible loan agreement on 10th August 2005 with Laurus MasterFund, Ltd. ("Laurus"). Laurus is a US based provider of finance to small capgrowth companies. Interest is payable on any outstanding amount at a rate of1.5% above the Wall Street Journal prime rate. Any amount outstanding under thisfacility may be converted into LiDCO ordinary shares, at either the Company's orLaurus' discretion. The conversion price is 24p (the "Fixed Conversion Price").If LiDCO exercises its conversion right, the price will be set at the lower ofthe Fixed Conversion Price or 85% of the average closing price for the 10 daysimmediately prior. Having achieved international regulatory approvals and while establishing aglobal distribution network, the funds will assist LiDCO as it seeks to grow itssales worldwide. Under the terms of the agreement, Laurus is generally restricted from holdingmore than 3% of the Company's issued share capital at any one time on anyconversion of the loan. In association with the facility the Company has alsotoday granted options to Laurus and its agent to subscribe for 1,123,596 newordinary shares in the Company at 30p per share, exercisable at any time until10th August 2010. Dr Terry O'Brien CEO LiDCO Group Plc stated: "The Laurus facility provides uswith financial flexibility that allows us to underpin our working capital as wegrow sales of LiDCO's minimally invasive cardiovascular monitoring products. Atthe half year point the Board is pleased to report that trading is broadly inline with expectations." For further information please contact: LiDCO Group PlcTerry O'Brien (CEO) [email protected] 020 7749 1500Hugh McGarel-Groves (FD) [email protected] Buchanan CommunicationsTim Anderson, Mary-Jane Johnson, James Strong 020 7466 5000 Panmure GordonGrant Harrison, Aubrey Powell, Marcus Jackson 020 7459 3600 Notes to Editors About Laurus Capital Management LLC Laurus is a US based financial institution that provides finance to small andmicro cap growth companies. Their flexible financing solutions are designed tohelp build cash reserves and enable management to focus on operations andstrategic growth opportunities. About LiDCO Plc LiDCO is a UK-based AIM-traded developer, manufacturer and leading supplier ofminimally invasive, computer-based hemodynamic monitoring equipment anddisposables used primarily for the management of critical care andcardiovascular risk hospital patients. Use of LiDCO's technology has been shownto significantly reduce the complications (particularly infections) and costsassociated with major surgery. The technology was invented in the Department ofApplied Physiology based at St Thomas' Hospital, London where the Companymaintains a research base. The Company's manufacturing facility is in Hoxton, London and its currentproducts are: • LiDCOplus and PulseCO monitors: computer-based platforms for displaying a range of real-time, continuous hemodynamic parameters including cardiac output, oxygen delivery and fluid volume; • LiDCO disposables: used in conjunction with the LiDCOplus Monitor to accurately determine cardiac output in a minimally-invasive manner. Distribution Network: The Company has now achieved registration of its products in 13 markets inEurope, the USA, Brazil and Japan. It sells direct to the NHS in the UK, andthrough a worldwide network of specialty critical care distributors. Background to the recently published clinical trial: Better than standard care -(EGDT) improves outcome in high risk surgery patients: The results of a major trial at St George's Hospital, London using LiDCO'sminimally invasive monitoring technology were presented during the 25thInternational Symposium on Intensive Care and Emergency Medicine in Brussels(21st to 25th March). The results have revealed the following: a) Savings in the cost of treating patients amounting to an average of £4,000 per patient. Extrapolated nationally, this would equate to a saving of £500 million per annum for the NHS b) The monetary saving (£248,000) - resulted from 640 hospital days saved for 62 patients, an average of more than 10 bed days per patient c) The savings in cost and hospital days were associated with a significant reduction in medical complications (particularly infections - which were halved) through the use of LiDCO's minimally invasive technology to improve tissue oxygen levels following surgery. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LID.L