Business
Financing Complete
Financing Complete.
About this update from Distil Plc
[{"type":"text","content":"\n Blavod Extreme Spirits PLC\n09 June 2006\n\n\n\nBlavod Extreme Spirits plc\n('the Company' or 'Blavod')\n\n\nBlavod Extreme Spirits USA, Inc. Completes Financing\n\nLondon, England -9th June, 2006 - Blavod Extreme Spirits plc (LSE:BES), the\nmaker and supplier of several wine and spirits brands, is pleased to announce a\nnew long-term secured loan facility with Laurus Master Fund Limited ('Laurus') a\nCayman Islands organized institutional fund that specialises in direct\ninvestments in small cap companies, including current relationships in the\nbeverage alcohol sector.\n\nThis new facility replaces the existing short term banking facilities currently\nin place, with improved terms and more favourable rates. The new arrangement is\na $3.0 million, three year revolving credit facility. Laurus has an option to\npayoff the outstanding balance of the facility using shares of the Company\npriced at 105 per cent of the lower of the average closing price for the 10\ntrading days prior to the availability of shares, which is expected to be at the\nCompany's forthcoming Annual General Meeting and the 10 trading days prior to\nJuly 31st, 2006.\n\nIn addition, Laurus has an additional option, but not the obligation, to\nsubscribe for up to up to 2.25m new ordinary shares in the Company at a price of\n105 per cent of the average closing price for the 10 trading days prior to the\ngranting of the options, which is expected to be at the Company's forthcoming\nAnnual General Meeting.\n\nThe exercise provisions have conditions attached that restrict Laurus to owning\nno more than 2.99 per cent of the ordinary share capital of the Company at any\npoint in time. There are also provisions which prohibit Laurus from lending\nstock or holding a short position in the Company's shares. The agreement also\ncontains provisions that allow for the Company's early repayment of the\nfacility.\n\nTony Murphy, Chief Financial Officer of BES commented, 'We are pleased to enter\ninto this relationship with Laurus. The completion of this, following our\nrecently completed equity offering, will provide us with enhanced financial\nflexibility to fund the next growth phase of our company.'\n\nThe Company also announced that it expects to announce its financial results for\nthe year to 31st March, 2006 by the middle of June.\n\n\n\nEnquiries:\n\n\nBlavod Jeff Ho...