SmartCare Finance P.L.C 5% Secured Bonds 2029

Smartcare Finance P.L.C. (the “Issuer”) has announced the issuance of €5,000,000 5% Secured Bonds redeemable in 2029 with a nominal value of €100 per Bond which shall be issued at par.

If you wish to apply for these bonds kindly follow the guidance at the bottom of this news item or contact us on +25 688 688 or [email protected] or via live chat on ww.cc.com.mt for more information.

BUSINESS OVERVIEW:

Mr Andrew Debattista Segond incorporated his first company, Smart Homes Ltd, in 2005 with the aim of providing high-quality construction services to both the private and public sectors. As the business grew, he moved on to incorporate and directly manage three additional development companies (namely Kai Investments Ltd, Smarthomes Developments Ltd and Smarthomes Real Estate Ltd) through which all development projects were acquired.

Following on from his successes with his construction business, Mr Debattista Segond has entered into the healthcare for the elderly sector. Specifically in this regard, Smartcare Pinto Ltd (the “Company”) was incorporated on 21st May 2018 and today owns and operates the Dar Pinto, a state-of-the-art elderly care home in Qormi with a total of 148 beds spread over 4,500 square meters.

Dar Pinto stretches between two parallel streets in Qormi, spanning from Triq Guze Duca on one end to Triq l-Imdina at the other. The Home also includes a Chapel, dining room, kitchen and other amenities finished to the highest of standards aimed at servicing the needs of the elderly.

The Company is in the final stages of negotiating an agreement with the Government of Malta for the take-up of all of the beds within the Care Home which agreement is envisaged to be entered into for a duration of five years and which, upon expiry, will grant the Government of Malta the option to renew for a further five years.

COMPANY OVERVIEW:

Following on from the above, the Issuer is a special purpose vehicle incorporated on the 7th of January, 2019 whose principal object is to act as the finance company of the Smartcare Group.

As the Issuer does not carry out any trading activities itself, it is economically dependent on the business prospects of the Smartcare Group, the core operations of which are the operation of the Care Home.

USE OF PROCEEDS:

The proceeds from the Bond Issue, which net of Bond Issue expenses are expected to amount to approximately €4,800,000, will be used by the Issuer for the following purposes, in the following amounts and order of priority:

• An amount of €1,520,000 will be used to pay Kai Investments Limited, a related company, which was contracted to undertake the finishing works and the acquisition of the equipment for the Care Home;

• An amount of €1,900,000 will be loaned to Smartcare Pinto Ltd for the purpose of repaying outstanding financing facilities taken out with Lombard bank, which facilities were originally used to finance the acquisition of the Care Home;

• An amount of €600,000 will be loaned to Smartcare Properties Limited for the purpose of acquiring and finishing an apartment in Sliema which will be rented out to third parties, defined as the “New Penthouse”;

• The remaining amount of €780,000 will be loaned by the Issuer to Smartcare Holdings Ltd to be used for the general corporate funding purposes of the Smartcare Group.

APPLICATION HAS BEEN MADE TO THE EXCHANGE FOR THE BONDS TO BE ADMITTED TO TRADING ON PROSPECTS MTF. PROSPECTS IS A MARKET DESIGNED PRIMARILY FOR EMERGING AND SMALLER COMPANIES TO WHICH A HIGHER INVESTMENT RISK TENDS TO BE ATTACHED. PROSPECTS MTF SECURITIES ARE NOT ADMITTED TO THE OFFICIAL LIST OF THE MALTA STOCK EXCHANGE.

Investors are strongly advised to carefully read the risk factors in the Company Admission Document.

HOW TO REGISTER TO BUY BONDS?

Orders will be accepted from Friday the 30th of May 2019. All orders must be submitted by not later than the 3rd of June at 12:00 pm (Closing date). The offer may close at an earlier date without prior notice in case of over-subscription.

Applications must be for a minimum value of €2,000 and multiples of €100.

A copy of the Company Admission Document is available HERE

Orders may be placed via CCTrader, by reaching out to your Financial Advisor, by contacting us on +356 25 688 688, via email on [email protected], or via live chat on www.cc.com.mt.

Calamatta Cuschieri Investment Services Ltd is acting as Corporate Advisor, Placement Agent and Manager for this bond issue.