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23 Oct 2013 15:43
Blavod Wines & Spirits plc
("Blavod" or the "Company")
23 October 2013
Proposed Placing of 57,130,000 Placing Shares at 1 pence per share
The Board of Blavod Wines & Spirits plc (AIM:BES), owner of premium drinks brands including Blavod Black Vodka, Blackwoods Gin and Vodka, and RedLeg Rum, are pleased to announce that the Company has conditionally raised £571,300 (gross) following the conditional Placing of 57.13 million New Ordinary Shares at a price of 1 pence per Ordinary Share. Funds raised from the Placing will be applied to general working capital and the development and marketing of existing drinks brands together with the relaunch of certain other owned brands. The Placing is conditional upon Admission.
Don Goulding, Executive Chairman of the Company, commented: "We are delighted to have received support for this Placing from our existing larger shareholders and a number of new investors. The money we have raised will be put to work swiftly, but prudently, and help the roll-out of brands like RedLeg and the recently relaunched Blackwoods gin, both of which have been very successful despite a modest marketing budget."
For further information please contact:
Blavod Wines & Spirits plcDon Goulding Executive Chairman | +44 20 7352 2096 |
SPARK Advisory Partners Limited (NOMAD) Neil Baldwin | +44 113 370 8974 |
Simple Investments (Broker)Nick Emerson Andy Thacker | +44 (0) 1483 413 500 |
Cadogan PRAlex Walters | +44 20 7839 9260 |
Background to, and reasons for, the Placing
The Company reported in its Trading Update on 13 September that it would concentrate its efforts on developing premium brands, and that it was encouraged by the increased contribution of owned brands, notably RedLeg Rum and Blackwoods Gin.
The Company has been considering an equity raise for some time both to provide working capital as well as marketing and development expenditure for the owned brand portfolio. Now that the concentration on its own brands is starting to bear fruit, and the market is starting to reflect this, the opportunity was taken to raise new equity finance, and at a price 33% higher than that at which last October's placing was conducted.
The Board is pleased that a number of its major shareholders have participated in the Placing.
The Placing
The Company has conditionally raised, in aggregate, £571,300 (before expenses) by means of the Placing. The intended use of the monies raised is set out below.
The Placing Shares will rank in full for all dividends and otherwise, pari passu with the Ordinary Shares from the date of Admission.
The Placing Shares will represent approximately 15.73 per cent. of the Enlarged Share Capital following Admission. The Enlarged Share Capital following Admission will be 363,232,507 Ordinary Shares. It is expected that the Placing Shares will be admitted to trading on AIM on 1 November 2013. The Placing is conditional upon Admission.
Use of Proceeds
The proceeds of the Placing will be used as follows:
Working capital | £282k |
Brand marketing and Brand Activation | £226k |
New Brand | £44k |
Expenses | £19k |
Total | £0.571 million |
Related Party Transactions
Sarah Bertolotti, Director, together with Bero SCA, which is a Substantial Shareholder, have each agreed to subscribe for Placing Shares at the Placing Price pursuant to the Placing as set out below. Sarah Bertolotti's and Bero SCA's agreement to subscribe for Placing Shares constitute related party transactions pursuant to the AIM Rules.
Holding prior to the Placing | Proposed participation in the Placing | Holding subsequent to the Placing | |||
Name | Number of Existing Ordinary Shares currently held | % of Existing Ordinary Shares in issue | Number of Placing Shares conditionally subscribed for | Total number of Ordinary Shares | Percentage of Enlarged Share Capital |
Sarah Bertolotti | 124,667 | 0.04 | 1,000,000 | 1,124,667 | 0.31% |
Bero SCA | 48,457,840 | 15.83% | 9,045,000 | 57,502,840 | 15.83% |
The allotments of the New Ordinary Shares to Sarah Bertolotti and Bero SCA are classified as related party transactions for the purposes of the AIM Rules. The Independent Directors, having consulted with SPARK Advisory Partners Limited, as nominated adviser to the Company, considers the terms of Sarah Bertolotti's and Bero SCA's participation in the Placing to be fair and reasonable insofar as Shareholders are concerned. In providing advice to the Independent Directors, SPARK has taken into account the commercial assessment of the Independent Directors.
Admission and dealings
Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. The Placing Shares, when issued, will rank pari passu in all respects with the Ordinary Shares, including the right to receive dividends and other distributions declared following Admission. It is expected that Admission will become effective, and that dealings in the Ordinary Shares on AIM will commence, at 8.00 a.m. on 1 November 2013.
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