Related Party Transaction - Loan Agreement

RNS Number : 8453A

Gusbourne PLC

03 June 2019

 

Gusbourne Plc

(London-AIM: GUS) ("Gusbourne", the "Company" or the "Group")

Related Party Transaction

The Company announces that it has entered into an agreement with Lord Ashcroft KCMG PC (the "Lender"), a substantial shareholder in Gusbourne, to receive an unsecured loan facility (the "Loan") of up to £2,000,000 (the "Loan Agreement") which is repayable on 31 October 2019.

The Loan will be used to provide working capital for the Company and may be drawn down in amounts of no less than £250,000. It carries interest on the principal amount outstanding from time to time at the rate of 10% per annum and, if the loan is not repaid by 31 October 2019, interest of 15% per annum thereafter.

To the extent that the Lender chooses, in its sole discretion to exercise any warrants it holds in the Gusbourne, the amount to be subscribed pursuant to such exercise ("the Subscription Amount") will be deemed to be satisfied to the extent of the amount outstanding in respect of the Loan and the amount of accrued but unpaid interest at the time of exercise or, if such amount is greater, to the extent of the Subscription Amount.

Under the terms of the Loan Agreement, should the loan not be repaid on 31 October 2019, the loan will become repayable on demand subject to such repayment not being in breach of the Company's existing banking facilities or if such repayment caused the Company to be unable to meet its creditors as they fall due.

In line with the Company's long term development strategy, additional funding will be sought from investors and debt providers to fund ongoing growth in the Company's operations and asset base and to  enable repayment of the Loan by 31 October 2019.

The Loan Agreement constitutes a related party transaction under Rule 13 of the AIM Rules. The Directors of the Company, having consulted with Cenkos Securities plc in its capacity as the Company's nominated adviser for the purposes of the AIM Rules, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned.

Enquiries:

Gusbourne Plc

Andrew Weeber/Charlie Holland                     [phone]

Cenkos Securities plc

Nicholas Wells/Callum Davidson                     [phone]

Note: This and other press releases are available at the Company's web site: www.gusbourneplc.com

Note to Editors

Gusbourne PLC ("the Company") is engaged, through its wholly owned subsidiary Gusbourne Estate Limited (together the "Group"), in the production and distribution of a range of high quality and award-winning English sparkling wines from grapes grown in its own vineyards in Kent and West Sussex. The majority of the Group's vineyards are located at its freehold estate at Appledore in Kent where the winery is also based. The Group has a total of 231 acres of vineyards which will increase to 288 acres following the planting of an additional 57 acres in 2020.

 

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