AH Medical Properties Agrees GBP2M Convertible Loan

6th Jul 2010 12:24

By Razak Musah Baba Of DOW JONES NEWSWIRES LONDON (Dow Jones)--AH Medical Properties said Tuesday it has secured GBP2 million of new financing through the issue of a secured convertible loan note to two private individuals which will be used to buy and renovate three new properties, as well as for general working capital. The company, which buys, develops and manages property for the healthcare industry, will use the money for the new primary care property schemes at Crawcrook, Stanwell and Cowplain costing a total of GBP9.8 million. Chief executive officer Bruce Walker, told Dow Jones Newswire that in addition to the convertible loan, the firm has a GBP8 million bank loan. AH Medical has also pre-let the sites at GBP661,661 a year over 20-years, with three-yearly reviews, and some of this money will be used to pay back the bank loan. The PLUS-quoted company said the convertible loan, which is being provided by Graham Peacock and Susan Tobbell, chief executive and finance director respectively of MRH Ltd, a U.K. independent owner and operator of petrol filling stations, will be due for repayment by July 5, 2012 unless previously converted into new ordinary shares in the company. Walker added that Peacock and Tobbell will have the right to appoint one representative to the board, which is likely to be one of them, as a non-executive director. Shares at 1125 GMT unchanged at 30.50 pence, valuing the company at GBP20.03 million -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; [email protected] (END) Dow Jones Newswires July 06, 2010 07:24 ET (11:24 GMT)