AIM-listed pharmaceutical company Venture Life Group raised £1.9m from UK Bond Network investors as part of the consideration for the acquisition of an oral care brand, Periproducts Limited.
Investors lent £1.9m to the Company in the first convertible bond to be issued via a peer-to-peer platform, earning 9% gross per annum over a 3-year term.
Venture Life Group is an international consumer healthcare products company which develops, manufactures and commercialises products for the ageing population, distributing its portfolio of branded products through its international partners.
While as an AIM-listed business we can raise money through the equity markets, we were drawn to UK Bond Network because of its flexible and innovative debt financing option.JERRY RANDALL, CEO, VENTURE LIFE
We were impressed by the platform’s transparent, clear approach and the certainty afforded by having the bond underwritten.
Key auction statistics & Headline terms
Average bid size
Interest rate (gross per annum)
|Coupon||9% gross per annum|
|Repayment||Interest-only payable quarterly, bullet repayment upon maturity|
|Conversion||87.5p - a 25% premium to the equity placing price of 70p|
|Security||Unsecured, but with protection features and a negative pledge|
The acquisition: Periproducts Limited
The proceeds of the £1.9m raise were to be used as part of the total £5.6m consideration for the acquisition of PeriProducts Limited, with the balance being provided by an associated equity raise.
Periproducts is a UK-based oral care company with a range of premium products including mouthwashes and toothpastes. The Company recorded a turnover of £2.8m and a profit of £0.2m in the year ending 30 November 2015 (both figures unaudited).
Venture Life Group has identified a number of opportunities to drive Periproducts' growth in the UK and overseas and expects the acquisition to be earnings enhancing in the first full year of ownership.
Chris Maule, CEO and founder of UK Bond Network, had the following to say about the transaction:
“In this low interest rate environment, many high net worth and sophisticated investors will be searching for yield and SME bonds in listed companies with a compelling business model offer an interesting option.”
“This convertible bond for Venture Life Group – an international healthcare company with a market capitalisation of over £20m – has proven to be an attractive opportunity for investors, and we as a business are pleased to be able to support Venture Life in completing their acquisition.”