Avia Health Informatics Plc : Convertible Loan Agreement

Avia Health Informatics PLC

("Avia" or the "Company")

Convertible loan agreement

04 September 2012
Further to the recent announcements made by Avia concerning its funding, the Company is pleased to announce that it has entered into a convertible loan agreement with Advanced Computer Software Group PLC (AIM:ASW) ("ACS"), a leading provider of software and IT services to the UK health, care and business sectors.
ACS has agreed to loan Avia £350,000 in the form of a convertible loan note with a term of three years at zero interest and secured by a fixed and floating charge over the Company's assets. The loan agreement also gives ACS the right to nominate a non-executive director to the Avia board.
The loan will convert, at the discretion of ACS, into 29.9 per cent. of the Company's issued ordinary share capital immediately following the issue of the new Avia ordinary shares of
0.5p each ("the Loan Conversion Shares") to be issued to ACS pursuant to the loan conversion.
Roger Lane-Smith, Non-Executive Chairman of Avia said: "We are delighted to enter into the loan agreement with ACS, a fast growing, well respected and substantial business in the sector. The injection of capital into Avia will allow the Company to trade through the short term working capital constraints we have been experiencing and, following conversion of the loan, we will have as our largest shareholder ACS, a business with significant management expertise and financial stability - news which should be welcomed positively by shareholders and existing and potential customers alike."
As a result of entering into the convertible loan agreement with ACS the Company has ceased discussions with TCA Global Credit Master Fund, LP for a proposed credit facility, the signing of heads of terms of which the Company announced on 15 August 2012.
Enquiries:

Avia Health Informatics PLC Roger Lane-Smith, Non-Executive Chairman Jeremy Dale, Interim Chief Executive	[phone] www.ahi-plc.com
Allenby Capital (Nominated Adviser and Broker) Nick Naylor Mark Connelly	[phone] www.allenbycapital.co.uk
Cadogan PR (Financial PR) Alex Walters	[phone] www.cadoganpr.com