Update – Acquisition of Aged Care Facilities

NZX Release 16 October 2020 Update - Acquisition of Aged Care Facilities Promisia Integrative Limited (NZX: PIL) (PIL) is pleased to update the market regarding the acquisition of aged care facilities from the Brankin Family Trust and related transactions (the Transaction). Debt Funding - Bank Lending Further to PIL's announcement to market on 30 September 2020, PIL can confirm that it has satisfied the conditions precedent in a term sheet for senior debt facilities with Bank of New Zealand (BNZ). The BNZ facilities are now just subject to agreeing and entering final documentation and completion of the Transaction. Under the terms of the BNZ facilities, BNZ will lend PIL $13 million under 4 separate facilities. Three of these facilities are for a term of 3 years with interest only payments. The fourth facility of $3.5 million is to be repaid over a term of 5 years. PIL must comply with the following financial covenants during the term of the BNZ lending: o earnings before interest, tax expense, depreciation, and amortisation of intangibles to be maintained at a minimum of 2 times gross interest expense; and o total financial debt not to exceed 71% of total assets at all times. The BNZ lending will be secured by first mortgages overs the facilities being acquired and general security agreements. Debt Funding - Non-Bank Lending As advised on 30 September, PIL has entered a conditional term sheet with a non-bank lender with specialist aged care sector experience for a further $5 million of debt facilities. PIL is still working through satisfying remaining conditions precedent in the term sheet but expects these will be satisfied next week. The non-bank lending will be secured by second mortgages over the facilities being acquired. Equity Finance PIL is pleased to confirm that it has re-documented the $6 million in new equity commitments for the Transaction with a range of wholesale and eligible investors. Next Steps Overall strong progress is being made towards completing the Transaction and PIL looks forward to completing the Transaction as soon as possible. ENDS For further information please contact Mr Stephen Underwood, Chairman on 027 499 3387. End CA:00361638 For:PIL Type:TRANSACT Time:2020-10-16 16:43:00