AMEI African Med

TIDMAMEI

RNS Number : 6612N

African Medical Investments PLC

02 October 2012

African Medical Investments plc / Index: AIM / Epic: AMEI / Sector: Healthcare

2 October 2012

African Medical Investments plc ('African Medical' or 'the Company')

Convertible Loan Note Instrument

African Medical Investments plc, the AIM listed company operating in the African healthcare sector, announces that it has been informed by Harbinger Capital Partners Master Fund I, Ltd ('Harbinger') that Harbinger will not subscribe for the second and final balance of US$750,000 (the 'Final Balance') on 1 October 2012 under the terms of a convertible loan note instrument constituted on 29 August 2012 (the 'August 2012 Convertible Loan Notes'). The initial balance of US$250,000 under the August 2012 Convertible Loan Notes was subscribed for by Harbinger on 29 August 2012.

Harbinger has informed the Company that it is prepared to subscribe for the Final Balance on 12 October 2012 and has undertaken to the Company that it will subscribe for the Final Balance by this date. On this basis, the Company and Harbinger have agreed that:

(a) with immediate effect, the terms of the August 2012 Convertible Loan Notes and the loan notes previously issued by the Company to Harbinger (together with the August 2012 Convertible Loan Notes being the 'Convertible Loan Notes') will be amended so that the conversion price is increased from 0.875p per share to 1.125p per share;

(b) certain restrictive covenants contained in the Convertible Loan Notes to which the Company would otherwise be bound will terminate and cease to have any effect if Harbinger does not subscribe for the Final Balance by 12 October 2012;

(c) the Company will release Harbinger from any liability arising from Harbinger not subscribing for the Final Balance on 1 October 2012; and

(d) Harbinger will reimburse the Company for the costs incurred by its UK legal advisers and its nominated adviser in connection with the implementation of the above arrangements, up to a cap of GBP25,000.

Further, the Company and Harbinger have acknowledged that failure by Harbinger to subscribe for the Final Balance by 12 October 2012 shall not affect any rights which the Company would otherwise have against Harbinger to require payment of the Final Balance.

As Harbinger is a substantial shareholder in African Medical, the arrangements described above constitute a related party transaction under the AIM Rules for Companies. The Board, other than Joseph Cleverdon and Altaf Mackeen, the Harbinger nominated directors, having consulted with Seymour Pierce Limited, the Company's nominated adviser, consider the terms of these arrangements to be fair and reasonable insofar as shareholders are concerned.

** ENDS **

For further information please visit www.amiplc.com or contact:

 
 Peter Botha        African Medical Investments   Tel: +27 833 269 564 
                     Plc 
 Jonathan Wright    Seymour Pierce Ltd            Tel: +44 (0) 20 7107 
                                                   8000 
 David Foreman      Seymour Pierce Ltd            Tel: +44 (0) 20 7107 
                                                   8000 
 David Hart         Daniel Stewart & Company      Tel: +44 (0) 20 7776 
                     Plc                           6550 
 Martin Lampshire   Daniel Stewart & Company      Tel: +44 (0) 20 7776 
                     Plc                           6550 
 Susie Geliher      St Brides Media & Finance     Tel: +44 (0) 20 7236 
                     Ltd                           1177 
 

Notes

African Medical Investments plc (AIM: AMEI) provides international standard healthcare through private hospitals across Africa, targeting the expanding African middle classes and the expatriate, non-governmental organisations, diplomatic and tourist markets. The Company currently has hospitals in Dar es Salaam (Tanzania), Maputo (Mozambique) and Harare (Zimbabwe). Its current focus is on improving occupancy rates and optimising the space of these facilities, however expansion remains a longer term focus either through the construction of new hospitals or investments in existing facilities.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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