Update on Capital Structure Options

Abano Healthcare Group Limited (NZX: ABA) notes the company’s share price volatility over recent trading days. The company reiterates the comments made in its market update on 2 June 2020, in particular:

  • Abano continues to explore a range of transaction possibilities involving third party interest in the Company’s shares and assets. These remain confidential, incomplete and subject to negotiation. The valuation of each of the transaction options being considered reflects the negative impact of COVID-19 on Abano’s business.
  • Abano is committed to addressing the company’s capital structure requirements within the current calendar year. The options available to the Company to address capital structure include, but are not limited to, raising capital.
  • Abano’s extended banking facilities reflect the Company’s commitment to consider the transaction possibilities currently under review and to address capital structure. The facilities include pricing and facility review events which will be assessed by Abano’s bank by reference to the company’s progress against the option Abano elects to pursue. Abano’s banking partner remains supportive of the company and the process it is following.

Abano will continue to keep shareholders updated as matters progress. Prior to any option being announced by Abano, persons considering trading in the Company’s shares may wish to seek professional advice.

Abano also advises that positive trading momentum in both its New Zealand and Australian dental businesses has continued, with forward bookings increasing as patients rebook deferred appointments, as well as new appointments.


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