ASCENDIS Health’s share price increased 8.8 percent to 87 cents yesterday after it said that a new debt facility of R550 million had been advanced to it, the proceeds of which were used to settle the debt owed to a lender, Emma Healthcare Holdings, and to provide additional working capital.
The new loan was advanced under the existing Senior Facility Agreement and retained the terms and interest rate of the debt owed to Emma as at December 29, save the extension of the maturity date to January 31, 2022, in order to finalise a recapitalisation plan being agreed between the lender consortium and the board.
“It is intended that, following the implementation of the Recapitalisation Plan, the company will be debt free and with surplus cash to focus on expanding its core businesses and future growth opportunities,” Ascendis’ new board said in a statement.
The plan involved the discharge of the debt in exchange for interests in certain of the company’s non-core businesses on terms still to be agreed.
Harry Smit, recently appointed independent non-executive director, had been appointed as chairman with effect from January 13.
Andrew Marshall, acting CEO, would step down from his role with effect from the same date and Cheryl-Jane Kujenga, current CFO, would assume the joint role of CFO and interim CEO.