Blavod Extreme Spirits PLC
09 June 2006
Blavod Extreme Spirits plc
('the Company' or 'Blavod')
Blavod Extreme Spirits USA, Inc. Completes Financing
London, England -9th June, 2006 - Blavod Extreme Spirits plc (LSE:BES), the
maker and supplier of several wine and spirits brands, is pleased to announce a
new long-term secured loan facility with Laurus Master Fund Limited ('Laurus') a
Cayman Islands organized institutional fund that specialises in direct
investments in small cap companies, including current relationships in the
beverage alcohol sector.
This new facility replaces the existing short term banking facilities currently
in place, with improved terms and more favourable rates. The new arrangement is
a $3.0 million, three year revolving credit facility. Laurus has an option to
payoff the outstanding balance of the facility using shares of the Company
priced at 105 per cent of the lower of the average closing price for the 10
trading days prior to the availability of shares, which is expected to be at the
Company's forthcoming Annual General Meeting and the 10 trading days prior to
July 31st, 2006.
In addition, Laurus has an additional option, but not the obligation, to
subscribe for up to up to 2.25m new ordinary shares in the Company at a price of
105 per cent of the average closing price for the 10 trading days prior to the
granting of the options, which is expected to be at the Company's forthcoming
Annual General Meeting.
The exercise provisions have conditions attached that restrict Laurus to owning
no more than 2.99 per cent of the ordinary share capital of the Company at any
point in time. There are also provisions which prohibit Laurus from lending
stock or holding a short position in the Company's shares. The agreement also
contains provisions that allow for the Company's early repayment of the
facility.
Tony Murphy, Chief Financial Officer of BES commented, 'We are pleased to enter
into this relationship with Laurus. The completion of this, following our
recently completed equity offering, will provide us with enhanced financial
flexibility to fund the next growth phase of our company.'
The Company also announced that it expects to announce its financial results for
the year to 31st March, 2006 by the middle of June.
Enquiries:
Blavod Jeff Hopmayer 001 615 771 9111
Brewin Dolphin Mark Brady 0113 241 0129
Keith Williams 0113 241 0186
Cardew Group Tim Robertson 020 7930 0777
Catherine Maitland
About Blavod Extreme Spirits:
Blavod Extreme Spirits, plc (LSE: BES), is an international spirits company
based in London with U.S. offices in Franklin, Tennessee. Formed by the 2003
merger of Blavod Black Vodka plc and Extreme Beverage Company, Blavod Extreme
Spirits produces and sells its black-colored vodka, aptly called Blavod,
throughout the world. BES also produces and sells the award-winning, intensely
flavored line of Players Extreme vodkas and rums. In the United States, BES is
the exclusive distributor of an elite wine portfolio of fine Italian wines, as
well as the award winning El Diamante del Cielo tequilas. For more information
on the company, please visit: www.blavodextreme.com.
This information is provided by RNS
The company news service from the London Stock Exchange