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17th December 2021

Rutherford Health Secures Loan Agreement

Rutherford Health, an operator of cancer treatment centres, has received commitments for £10m of new funding.

Schroder UK Public Private Trust plc (SUPPT) has engaged with certain other shareholders in Rutherford who have together committed to provide bridge finance in the form of a shareholder loan in the amount of £8m.

The loan is to be repaid within six months of 15 December 2021 or on the first day after Rutherford has received new capital in an aggregate principal amount of £40m or more.

In addition, LF Equity Income Fund has committed to provide a convertible loan facility of £2m.

Rutherford intends to appoint an investment bank in due course to source additional long-term funding to strengthen the business as it grows revenues in its existing facilities.

Grant Thornton is Rutherford’s corporate adviser.

The loan has been provided in the context of a wider reorganisation of Rutherford whereby Mark Jackson has been appointed as the new non-executive chairman. In addition, Mike Moran has stepped down as chief executive.

A new chief executive with significant operational experience in the UK healthcare services industry will be appointed in early 2022, while an experienced interim, Sean Sullivan, has been appointed as chief restructuring officer to bridge the intervening period.

Rutherford operates a network of four centres in Wales, Reading, Northumberland and Liverpool.