Proventec takes short term loan and plans to raise funds through new share issue

Jul 2 2009 By Neil Hodgson

PROVENTEC, the specialist Liverpool firm which developed steam cleaning technology to kill hospital superbugs like C difficile, today announced a short term £500,000 borrowing facility.

It said the unsecured loan arrangement with a European institutional investor will support its working capital requirements until September 30.

Anything drawn will bear an interest rate of 16%.

Chief executive David Chestnutt also confirmed the Rodney Street-based firm was in talks regarding raising further funds through a new share issue.

“We have been around the City for two weeks and have been well received by our existing shareholders.”

He said the short term loan was necessary because a payment expected in March “was not received.”

Proventec also had a large payment to make at the end of June which coincided with a loan note and interest payments.

Mr Chestnutt said it was not considered appropriate to negotiate the loan note, so the short term loan was preferred.

He said an announcement regarding a share issue will be made shortly.

Proventec employs more than 130 staff working in healthcare, hospitality and food industry hygiene.