05 May 2021
Rutherford Health plc
Drawdown of £15m from Infrastructure Investment
Rutherford Health plc (AQSE: RUTH, the "Group"), a healthcare group committed to providing innovative cancer care of the highest quality, is pleased to announce that the conditions necessary to enable drawdown of £15 million, the remaining balance of the £40 million infrastructure investment signed in March 2021 with Equitix Investment Management Ltd ("Equitix"), have now been met.
As reported in the original transaction announcement on 23 March 2021, the investment is backed by the freehold transfer of the Rutherford Cancer Centre South Wales and supported by other security to be put in place over the Group's other centres. The term of the agreement is over 25 years on normal commercial rates on the expiry of which the Group will have the option to repurchase the freehold of the South Wales centre for an agreed nominal sum.
Under the terms of the agreement with Equitix, £25 million of the £40 million was payable immediately with the balance of £15 million payable following the granting of additional security over the other centres. This grant has now been agreed, enabling the additional funds to be drawn down. The timescale for drawdown was within six months of the agreement being signed. The funds will be received by the end of May 2021.
The proceeds from the investment are being used by the Group for further investment in its infrastructure as well as for capital for the Group's development for the medium term.
Mike Moran, CEO of Rutherford Health, commented:
"We are pleased to complete the second part to this agreement with Equitix, enabling us to draw down on the balance of £15 million. The full investment of £40m strengthens our balance sheet and provides us with the multiple options for our medium term development.
"While everyone has been and continues to worry about COVID-19, in the UK, there are around 450 people dying from cancer every day and survival rates are going backwards. Following this financing, we can focus our energies on driving the business forward - all our sites are fully operational and we are determined to help doctors and patients alike tackle the backlog in cancer diagnosis and treatment."
Information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.