Gusbourne PLC Result of Subscription (7718Z)

TIDMGUS

RNS Number : 7718Z

Gusbourne PLC

05 September 2018

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

5 September 2018

Gusbourne Plc

("Gusbourne", the "Company" or the "Group")

Result of Subscription & Related Party Transaction

Further to its announcement released on 12 July 2018 regarding a subscription to raise between GBP3 million and GBP5 million, by way of an offer for subscription of new ordinary shares at a price of 60 pence per share (the "Subscription"), the Company announces that it has received valid acceptances from investors totalling approximately GBP3.7 million through the issue of 6,221,699 new ordinary shares ("New Shares").

Furthermore, 6,221,699 Warrants will be issued on a 1 for 1 basis to subscribers of New Shares, at an exercise price of 60p, further detail of which is set out in the previous announcement.

The net proceeds from this fundraising will be used for capital expenditure on the Company's existing vineyards until maturity, additional winery and storage capacity and working capital, particularly with regard to the Company's increasing wine stocks.

Lord Ashcroft KCMG PC has subscribed for GBP2.7 million representing 4,504,510 New Shares, of which GBP1 million will be satisfied through the repayment of the shareholder loan, in full, which was provided to the Company on 31 May 2018.

Certain directors of the Company have subscribed for New Shares in the following amounts:

 
                                             Number       Number of       Value of   Total interest 
                                             of New    New Warrants     New Shares      in ordinary 
                                             Shares      subscribed     subscribed        shares in 
                                         subscribed                          (GBP)      the Company 
                                             at 60p                                       following 
                                                                                         Admission* 
                    Non-Executive 
 Paul Bentham        Director                83,334          83,334   GBP50,000.40          938,370 
                    Non-Executive 
 Ian Robinson        Director                41,667          41,667   GBP25,000.20          481,086 
                    Non-Executive 
 James Arbuthnot     Director                25,000          25,000   GBP15,000.00           81,360 
 Matthew            Non-Executive 
  Clapp              Director                16,667          16,667   GBP10,000.20           73,027 
                    Non-Executive 
 Mike Paul           Deputy Chairman         83,334          83,334   GBP50,000.40          110,806 
 

*Following issue of the New Shares only

Lord Ashcroft's participation in the Subscription constitutes a related party transaction under Rule 13 of the AIM Rules as Lord Ashcroft is a substantial shareholder in the Company.

The independent directors of the Company, being those who are not participating in the Subscription, 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.

An application has been made for the 6,221,699 New Shares to be admitted to trading on AIM. Admission is expected to occur on 11 September 2018. Following Admission, the Company will have 45,588,683 ordinary shares admitted to trading on AIM. Following Admission, Lord Ashcroft's shareholding in the Company remains at approximately 72.4% of the enlarged issued share capital, with a total beneficial interest in 33,005,663 ordinary shares.

Unless otherwise defined, capitalised terms within this announcement shall have the same definition as those within the Company's announcement dated 12 July 2018.

Enquiries:

Gusbourne Plc

   Charlie Holland                                                                 [phone] 

Cenkos Securities plc

   Nicholas Wells / Callum Davidson                                 [phone] 

Note: This announcement and other press releases are available to view at the Company's website: www.gusbourneplc.com

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September 05, 2018 02:00 ET (06:00 GMT)