Join our daily newsletter At The Bell to receive exclusive market insights
- Doctor Care Anywhere (DOC) secures a $15.6 million loan with AXA PPP Healthcare Group
- The company’s subsidiary, DCA, has entered into a four-year secured and guaranteed loan with AXA to borrow up to £10 million (around A$15.6 million) in three tranches
- The loan can be drawn down upon certain conditions being met and will be used for general working capital purposes
- AXA is already a major Doctor Care Anywhere partner and a primary source of revenue for the company, and DOC says this loan is further evidence of AXA’s belief in its service
- DOC shares are up 35.29 per cent trading at 6.9 cents at 1:16 pm AEDT
Doctor Care Anywhere (DOC) has secured a $15.6 million loan with AXA PPP Healthcare Group.
The company’s subsidiary, DCA, has entered into a four-year secured and guaranteed loan with AXA to borrow up to £10 million (around A$15.6 million) in three tranches.
The first tranche of £5 million is available for three months from the initial entry into the loan, tranche two of £2.5 million is available for three months from March 1, and tranche three of the remaining £2.5 million is available for three months thereafter.
The loan can be drawn down upon certain conditions being met and will be used for general working capital purposes.
Specifically, tranche one can be drawn upon the provision of certain specified documents and information to AXA, tranche two upon provision to AXA of IT development plans, and tranche three upon evidence milestones in the prior IT development plans are delivered.
AXA is already a major Doctor Care Anywhere partner and a primary source of revenue for the company.
DOC Chairman Richard Dammery said securing this loan was “further evidence” of AXA’s belief in the company’s service as an important benefit to its members.
In this vein, AXA Health UK’s Chief Executive, Tracy Garrad, said providing financial support to DCA was “imperative” to ensure continuity of service to AXA’s clients.
While Mr Dammery acknowledged the loan would increase DCA’s dependence on AXA and enhance AXA’s rights to the company, he said it would also ensure DCA could continue to develop innovative healthcare pathways into 2023 and beyond.
The principal amount of the loan is repayable in full on a straight-line basis by repaying 1/13th of the total aggregate principal outstanding from November 30, 2023, and thereafter quarterly, with the last repayment due on November 30, 2026.
DOC shares were up 35.29 per cent trading at 6.9 cents at 1:16 pm AEDT.
