This announcement contains inside information.
(London - AIM: GUS) (Gusbourne or the "Company")
Placing of Secured Deep Discount Bonds and Share Warrants
The Company announced on 20 July 2016 that it intended to place 5 year Secured Deep Discount Bonds at a discount of 9% per annum ("Bonds"). The Company also announced that it would issue share warrants ("Warrants") to Bond holders at the rate of one Warrant for every £2 of the Bonds. Each Warrant will, upon exercise, entitle the holder to subscribe for one new ordinary share in the Company at an exercise price of 75 pence per share. The Placing was made available to a limited selection of shareholders and other placees. The Company limited the total amount to be raised by subscription for the Bonds to £8,000,000 but with the discretion to increase the amount to no more than £10,000,000.
Gusbourne is pleased to announce that it has received applications from investors ("Investors") to subscribe for Bonds totaling £4,073,034 and that all these applications have been accepted in full ("Proceeds"). Dispatch of the Bond certificates and Warrant certificates to individual holders is subject to the completion of security documentation, normal for this type of transaction.
Certain directors of the Company have applied for Bonds in the following amounts:
· Andrew Weeber, Chairman; £600,000;
· Ian Robinson, Non-Executive Director; £100,000;
· Lord Arbuthnot PC; Non-Executive Director £10,000; and
· Matthew Clapp; Non-Executive Director: £10,000.
The Company agreed that the payment for Andrew Weeber's Bonds would be fully satisfied out of the proceeds of the redemption of the existing convertible bonds ("Existing Bonds") held by him and his wife. Accordingly, subject to completion of security documentation, approximately £1,755,000 of the Proceeds will be used to repay the existing bonds in accordance with the terms of those bonds and Andrew Weeber and his wife will reinvest £600,000 of those redemption proceeds in satisfying their application for Bonds.
Lord Ashcroft KCMG PC has applied for £2,623,034 of Bonds.
Following the payment of the Existing Bonds, the net cash proceeds receivable by the Company will amount to approximately £2,318,000. The net cash proceeds will be used for working capital, ongoing investment of the Gusbourne brand, and capital expenditure in line with the Company's long term strategy to further expand productions and sales of its international award winning English sparkling wines.
The repayment of the Existing Bonds held by Andrew Weeber and his wife constitutes a related party transaction under the AIM Rules, as does the subscription by Lord Ashcroft KCMG PC. The independent Directors consider that, having consulted with Cenkos, the terms of these transactions are fair and reasonable insofar as Shareholders are concerned.
Over the coming months, the Company may seek to place further Bonds within the same series and subject to the same security and other terms, provided that the total raised in connection with the Bonds issuance is no more than £10 million.
Andrew Weeber +44 (0)12 3375 8666
Cenkos Securities plc
Nicholas Wells +44 (0)20 7397 8920
Note: This and other press releases are available at the Company's web site: www.gusbourneplc.com
This information is provided by RNS