The Health Group, a Bracknell-based provider of tailor-made private healthcare packages to corporate and individual clients, has been granted a loan of £600,000 by investment group Pearl Street.
Pearl Street, which is listed on the AIM market, has agreed to advance this funding in the form of unsecured convertible loan notes. It has also taken a 12.5% stake in the company, having taken over loans payable to the directors by the company and converted them into shares.
If Pearl Street converts the loan notes into shares, its stake will rise to 50%. It also retains an option to buy the remaining shares at a multiple of six times the average annual pre-tax profits for the two years ending on 31 December 2006.
In the year to June 2004, The Health Group made a loss of £760,000 on £213,000 of revenue. The company provides cover for private healthcare costs, including consultants' fees, post-operative care and accommodation.
