Gusbourne PLC Placing of Bonds and Share Warrants (7157I)
01 September 2016 - 1:01PM
UK Regulatory
TIDMGUS
RNS Number : 7157I
Gusbourne PLC
01 September 2016
This announcement contains inside information.
Gusbourne Plc
(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 GBP2 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 GBP8,000,000 but with the discretion
to increase the amount to no more than GBP10,000,000.
Gusbourne is pleased to announce that it has received
applications from investors ("Investors") to subscribe for Bonds
totaling GBP4,073,034 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; GBP600,000;
-- Ian Robinson, Non-Executive Director; GBP100,000;
-- Lord Arbuthnot PC; Non-Executive Director GBP10,000; and
-- Matthew Clapp; Non-Executive Director: GBP10,000.
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 GBP1,755,000 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 GBP600,000
of those redemption proceeds in satisfying their application for
Bonds.
Lord Ashcroft KCMG PC has applied for GBP2,623,034 of Bonds.
Following the payment of the Existing Bonds, the net cash
proceeds receivable by the Company will amount to approximately
GBP2,318,000. 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 GBP10 million.
Enquiries:
Gusbourne Plc
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
The company news service from the London Stock Exchange
END
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