Gusbourne PLC Related Party Transaction - Loan Agreement (8453A)
03 June 2019 - 4:00PM
UK Regulatory
TIDMGUS
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 GBP2,000,000 (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 GBP250,000. 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 +44 (0)12 3375 8666
Cenkos Securities plc
Nicholas Wells/Callum Davidson +44 (0)20 7397 8920
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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