www.stirlingproducts.net
Stirling Products (ASX:STI) is a manufacturer and marketer of proprietary and/or patented pharmaceutical products and natural health products for its own interests as well as on a contractual basis for third parties. Strategically, Stirling Products is positioned to capitalise on the rapidly changing conditions within the global pharmaceutical and health markets.
The Stirling Products corporate headquarters are in Sydney, Australia and its North American pharmaceutical manufacturing operations are based on Cape Breton, Nova Scotia, Canada.
Stirling operates through three main business units each managed by proven industry specialist managers:
- Pharmaceutical & Healthcare
- Research & Development
- Animal Products
Stirling Products draws funding commitments of $3.9 million
Pharmaceutical and Healthcare group, Stirling Products (ASX:STI) has successfully tapped the capital market for funding, drawing current commitments of $3.9 million in funding including the renegotiation of a mezzanine funding facility announced on 22 and 23 July 2010.
Funds raised will be used for working capital and to support the initial funding of the Company’s recently acquired TeleMedCare business.
The previous Mezzanine facility agreement has been terminated by mutual consent. A new agreement has been entered into on the same key terms but providing for an increase in the facility from $1.2 million to $2.1 million and for the convertibility of any shares to be subject to and conditional upon prior shareholder approval.
Details of the replacement funding facility are:
- A $2.1 million private funding facility over an 18 month period has been secured with interest payable at 1% per month, only on funds drawn down
- An establishment fee of $20,000 is payable together with legal fees
- Subject to and conditional upon having received shareholder approval any or all of the drawn facility may be convertible to shares at an average $0.01 per share ($0.008 for the first $700,000 conversion, $0.01 for the next $700,000 and the balance at $0.012) at the lender’s option at anytime
before 31 December, 2011
- The Company shall seek shareholder approval for the above provision for conversion to shares at a shareholder meeting before 31 December 2010
- The facility may have a charge over the Company’s O’Connell Street properties until the sale of the properties (If so charged, the funding facility will continue following any sale).
The Company also has commitment to a further $1.8 million in loan funds to be provided by a number of sophisticated investors, that subject to shareholder approval will be subject to conversion to shares at the same conversion basis as the Mezzanine funding.
Subject to shareholder approval, to be sought within 90 days, these loan funds may be converted at anytime prior to December 31, 2011 at an average $0.01 per share ($0.008 for the first $600,000 conversion, $0.01 for the next $600,000 and $0.012 for the balance $600,000) at the lender’s option. No interest is payable and placement fees of 5% will be payable following shareholder approval.
The Company’s properties in Sydney CBD are expected to be sold at auction realizing further funds. The funds advanced and the funds expected to be realized through the Company’s property sale will be used as working capital and to support the initial funding of the Company’s recently acquired TeleMedCare business.
The Company further advises that it is in advanced negotiation with institutional interests to secure further substantive funding and will advise the market accordingly in due course.
Stirling recently acquired a 65% controlling interest in TeleMedCare Holdings Pty Limited, a leading brand in remote patient monitoring equipment and services.
TeleMedCare is currently operational in Australia and the UK and intends to expand operations in other countries. Distribution Agreements are in process of being finalised with interests in the UK and NZ.
