Gunsynd PLC Further Investment in Human Brands (1419G)
28 February 2018 - 3:54AM
UK Regulatory
TIDMGUN
RNS Number : 1419G
Gunsynd PLC
27 February 2018
Gunsynd plc
("Gunsynd" or the "Company")
Further Investment in Human Brands and Investment Update
Gunsynd Plc (AIM: GUN, NEX: GUN) is pleased to announce that it
has invested a further GBP130,000 in Human Brands plc ("Human
Brands"), a US based premium spirits company, on the same terms as
those announced on 18 December 2017, as follows:
-- GBP130,000 invested by way of convertible loan note ("Loan Note");
-- The Loan Note will accrue interest at 9% per annum;
-- The repayment of the Loan Note is due on the 30th day of the
24(th) month after the date of issue of this note ("Repayment
Date"). The payment at maturity will include the principal amount
of the Loan Note plus all accrued interest;
-- While currently not quoted on any exchange, Human Brands
intends to seek admission to trading on the London Stock Exchange
during 2018. The Company shall be entitled at any stage after the
date falling thirty (30) days after Human Brands has achieved
trading status on a recognised securities exchange and prior to the
Repayment Date to convert all or any part of the Loan Note (and any
outstanding interest thereon) into ordinary shares in the capital
of Human Brands; and
-- The Loan Note shall be converted into ordinary shares of
Human Brands at a price equal to a 55% discount to the three day
average volume weighted average price of the shares as recorded
immediately prior to the conversion date.
Gunsynd now holds, as a result of this investment and the
investment announced on 18 December, Loan Notes totalling
GBP260,000 in Human Brands.
In recognition of the efforts of Gunsynd to assist with its
proposed London Stock Exchange listing, Human Brands will, subject
to completion of the listing, pay Gunsynd a fee equal to 1 per cent
of its market capitalisation immediately following completion of
the Transaction. This Fee shall be satisfied by the issue of such
number of fully paid ordinary shares in Human Brands (post
completion of the Transaction) at the listing price as equal 1 per
cent of the issued share capital at admission.
About Human Brands
Human Brands is a private US company that produces, distributes
and markets premium spirits, wine and beer in the USA and Asia.
Their two key products, which they both own the brand of and
distribute, are an aged tequila (Copa Imperial Tequila) and a
Japanese Whiskey (Shinju Whiskey) which are in two of what the
Directors believe to be the fastest growing areas of the US spirits
industry. In the year ended 31 December 2016, Human Brands had
turnover of $1.04m and profit after tax of $90k.
Investment update
Gunsynd has disposed of 2,991,427 shares in UOG Ltd for a
consideration of GBP169,674 representing a circa 100% profit on the
average entry price. The holding in UOG now stands at 3,067,172
shares.
Hamish Harris, the Company's Executive Chairman, commented:
"We are very pleased to have been able to increase our position
in Human Brands. We believe Tequila and Japanese Whiskey are set to
be two of the spirits with the highest growth in sales in the next
few years. With two premium drinks in this area and in particular a
stock of aged premium sipping tequila (Copa Imperial), we believe
Human Brands is ideally placed to take advantage of this growth.
With the sales of two other brands, Casamigos and Patron, for circa
$1bn and $5bn respectively, and tequila's change in recent years
from perception of being a drink consumed by students to a top
shelf liquor, we feel this could be the flagship product that could
see Human Brands propelled towards serious success."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
The directors of Gunsynd accept responsibility for this
announcement.
For further information please contact:
Gunsynd plc
Hamish Harris +44 20 7440 0640
Cairn Financial Advisers
LLP
James Caithie / Sandy
Jamieson +44 20 7213 0880
Peterhouse Corporate
Finance
Lucy Williams +44 20 7469 0930
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQDLFLVLFEBBL
(END) Dow Jones Newswires
February 27, 2018 11:53 ET (16:53 GMT)
Gunsynd (LSE:GUN)
Historical Stock Chart
From Apr 2024 to May 2024
Gunsynd (LSE:GUN)
Historical Stock Chart
From May 2023 to May 2024