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RNS Number : 5361R

NextGen Group PLC

04 November 2011

NextGen Group plc ("NextGen" or the "Group")

Business Update and Convertible Loan Agreement of EUR650,000

The Group reports that sales in its biomarker and testing business have been below management expectations recently but the board are confident that the expanded strategy, as announced on 22 September, remains firmly on track and that this strategy will help them build a scalable and successful long-term business. As a result of the lower than expected sales, in order to continue to fund the working capital requirements of the Group and the investments in the Diagnostic business, NextGen has entered into a convertible loan agreement for the provision of additional funding of EUR650,000. The Directors believe that this additional funding will be sufficient for its present requirements and currently expect further funding to be required in early Q1 2012.

The convertible loan agreement is with Alpha 4 Concepts GmbH and the terms of the loan, which is for a period ending on 31 October 2012, include a coupon of 12% pa and the loan is repayable on 7 days' notice.

The loan (plus interest) shall be convertible, at the lender's option no later than two business days following the end of the loan period, into ordinary shares in the Company at a price of 0.1p per share plus one warrant for every share issued, with the warrants being exercisable for 3 years from the date of grant.

The lender has requested that nanotecquity AG receive a monitoring fee, payable by the Company, of EUR6,500 per month during the period of the loan.

In addition, the Company is to pay placing commission of 7% to OAR GmbH for its services in connection therewith.

Klaus Rosenau is a director of both nanotecquity AG and the Company, and nanotecquity AG and the Company have 3 mutual shareholders which between them own almost 100% of nanotecquity AG and just under 20% of the Company. Accordingly, the payment of commission to nanotecquity AG comprises a related party transaction pursuant to the AIM Rules. The Directors of NextGen (other than Klaus Rosenau), having consulted with the Company's Nominated Adviser, Seymour Pierce Limited, consider that the payment of the monitoring fee to nanotecquity AG, is fair and reasonable insofar as the Company's shareholders are concerned.

For further details please contact:

   Klaus Rosenau, Chairman               +49 160 5516756 

NextGen Group

   Freddy Crossley/Nicola Marrin         020 7107 8000 

Seymour Pierce Limited

This information is provided by RNS

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