Distil Regulatory News (DIS)

17 Dec 2007 12:27

Blavod Extreme Spirits PLC17 December 2007 The previous release, RNS number 0385K issued at 1007 today, stated thatLawrence Banks, non-executive director of the Company, has subscribed £50,050for 18,200,000 Placing Shares. This statement was incorrect as the subscriptionof £50,050 represents 1,820,000 Placing Shares. The announcement should haveread: Blavod Extreme Spirits PLC ('Blavod' or the 'Company') Issue of Equity 17 December 2007 Placing of 13,057,900 new Ordinary Shares at 2.75p per share to raiseapproximately £0.36m. Blavod, the AIM listed owner of the Blavod Black Vodka brand, and wine andspirits distributor, today announces it has raised approximately £0.36m by wayof a placing of new shares. Summary of the Placing: • Placing of 13,057,900 Placing Shares at a price of 2.75p per share to raiseapproximately £0.36m. • Proceeds of the Placing will be used to strengthen the Company's balance sheetand fund the working capital requirements anticipated as a result of the salesgrowth of Blavod Black Vodka and the rest of the portfolio of wine and spiritbrands. The Placing is being made on a non pre-emptive basis as the time and costsassociated with a pre-emptive offer resulting from the introduction of the EUProspectus Rules (which came into force in July 2005) are considered by theDirectors to be excessive. The making of a pre-emptive offer would require theproduction of a prospectus which would have to comply with the Prospectus Rulesand be pre-vetted and approved by the FSA. The Company obtained shareholderconsent to the issue of shares constituting up to 20 per cent of the Company'sexisting issued share capital on a non pre-emptive basis at the recent GeneralMeeting. Details of the Placing The Company is raising approximately £360,000 through the issue of the PlacingShares at the Placing Price. The Placing Price of 2.75p represents a premium of5 per cent. to the closing middle market price of 2.625p on 14 December 2007,being the last practicable dealing day prior to the date of this announcement.The Placing Shares will represent approximately 15.13 per cent. of the Company'sissued share capital immediately following Admission. Related party transaction The Placing Shares have been placed at the Placing Price with variousinstitutional investors, and to Directors and key employees in the Company. Inparticular Richard Ambler, Managing Director, has subscribed £16,500 for 600,000Placing Shares, Colin Campbell, non executive Chairman has subscribed £30,000for 1,090,900 Placing Shares, and Lawrence Banks, non executive director, hassubscribed £50,050 for 1,820,000 Placing Shares. The issue of Placing Shares to Richard Ambler, Colin Campbell and Lawrence Banksis classified as a transaction with a related party for the purposes of the AIMRules. In accordance, therefore, with the AIM Rules, Willie Phillips (theindependent director), having consulted with the Company's nominated adviser,Brewin Dolphin, considers that the terms of the transaction (namely thesubscriptions by Messrs Ambler, Campbell and Banks, pursuant to the Placing atthe Placing Price) are fair and reasonable insofar as its Shareholders areconcerned. Admission and dealings in the Placing Shares are expected to commence on AIM on20 December 2007.For further information, please contact: Blavod Extreme Spirits plcRichard Ambler (Managing Director) 0207 352 2096 Brewin Dolphin (Nominated Adviser)Neil Baldwin/Alison Barrow 0845 270 8600 This information is provided by RNS The company news service from the London Stock Exchange