Financing Complete

9 Jun 2006 10:13

Blavod Extreme Spirits PLC09 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), themaker and supplier of several wine and spirits brands, is pleased to announce anew long-term secured loan facility with Laurus Master Fund Limited ("Laurus") aCayman Islands organized institutional fund that specialises in directinvestments in small cap companies, including current relationships in thebeverage alcohol sector. This new facility replaces the existing short term banking facilities currentlyin place, with improved terms and more favourable rates. The new arrangement isa $3.0 million, three year revolving credit facility. Laurus has an option topayoff the outstanding balance of the facility using shares of the Companypriced at 105 per cent of the lower of the average closing price for the 10trading days prior to the availability of shares, which is expected to be at theCompany's forthcoming Annual General Meeting and the 10 trading days prior toJuly 31st, 2006. In addition, Laurus has an additional option, but not the obligation, tosubscribe for up to up to 2.25m new ordinary shares in the Company at a price of105 per cent of the average closing price for the 10 trading days prior to thegranting of the options, which is expected to be at the Company's forthcomingAnnual General Meeting. The exercise provisions have conditions attached that restrict Laurus to owningno more than 2.99 per cent of the ordinary share capital of the Company at anypoint in time. There are also provisions which prohibit Laurus from lendingstock or holding a short position in the Company's shares. The agreement alsocontains provisions that allow for the Company's early repayment of thefacility. Tony Murphy, Chief Financial Officer of BES commented, "We are pleased to enterinto this relationship with Laurus. The completion of this, following ourrecently completed equity offering, will provide us with enhanced financialflexibility to fund the next growth phase of our company." The Company also announced that it expects to announce its financial results forthe 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 companybased in London with U.S. offices in Franklin, Tennessee. Formed by the 2003merger of Blavod Black Vodka plc and Extreme Beverage Company, Blavod ExtremeSpirits produces and sells its black-colored vodka, aptly called Blavod,throughout the world. BES also produces and sells the award-winning, intenselyflavored line of Players Extreme vodkas and rums. In the United States, BES isthe exclusive distributor of an elite wine portfolio of fine Italian wines, aswell as the award winning El Diamante del Cielo tequilas. For more informationon the company, please visit: www.blavodextreme.com. This information is provided by RNS The company news service from the London Stock Exchange