Breach of Banking Covenant

Market Announcement 31 August 2021 BREACH OF BANKING COVENANT Promisia Healthcare Limited (NZX:PHL) is currently completing its quarterly covenant reporting and can advise that it has today determined that the company was in breach of one of two banking covenants for the quarter ended 30 June 2021. The covenant relates to the requirement for EBITDA / Interest cover to be at least twice the interest cost. The company was compliant with this covenant in the previous quarter. The reasons for the breach in the June quarter are: o Higher than budgeted losses at Aldwins House resulting from slower occupancy growth at that facility. Core operating costs are incurred regardless of the number of residents and growth in resident numbers spreads these costs and allows cost recovery. o A number of one-off costs in the quarter. The company has advised the Bank of New Zealand of the breach and has requested a waiver of this covenant for the June 2021 quarter. The company will advise the market of its position in due course. The company is compliant with the total debt to asset ratio requirement of 71%. The actual total debt to asset ratio at 30 June 2021 was 30.9%. The company is making monthly interest and loan repayments on the due dates as required. For further information please contact Mr Stephen Underwood, Chairman, on Ph 027 499 3387 ENDS End CA:00378287 For:PHL Type:GENERAL Time:2021-08-31 14:40:16