Related Party Transaction

23 December 2019

Gusbourne Plc

("Gusbourne", the "Company" or the "Group")

Related Party Transaction

Gusbourne (AIM: GUS) announces that its subsidiary undertaking Gusbourne Estate Limited has entered into an agreement with Franove Holdings Limited (the "Lender"), a company wholly owned by Paul Bentham, a Non-Executive Director of Gusbourne, to receive an unsecured short-term loan facility (the "Loan") of £1,250,000 (the "Loan Agreement") which is repayable on 10 December 2020 (or earlier at the Company's option).

The Loan will be used to provide working capital for the Company and will be drawn down in a singular transaction. Interest is payable on repayment of the debt at 15% per annum.

Subject to Barclays Bank Plc's prior ranking security and Barclays Bank Plc's consent it is intended that the Loan will be refinanced by a new loan (the "Replacement Loan") secured by a debenture and a legal charge from Gusbourne Estate Limited and is guaranteed by Gusbourne plc. The repayment term of the Replacement Loan will be the same as the Loan but interest will be payable on repayment of the debt at 10.5% per annum, unless the debt is repaid within 3 months, in which case it will be 15% pa, or between 3-6 months, in which case it will be 12.5% pa.

In line with the Company's long term development strategy, additional longer term funding will be sought from investors and debt providers to fund ongoing growth of the Company's operations and asset base and to enable repayment of the Replacement Loan on or before 10 December 2020.

The Company will provide further updates in relation to the Replacement Loan in due course. 

The Loan Agreement constitutes a related party transaction under Rule 13 of the AIM Rules. The Directors of the Company, having consulted with Canaccord Genuity Limited in its capacity as the Company's nominated adviser for the purposes of the AIM Rules, consider the terms of the transaction to be fair and reasonable insofar as the Company's shareholders are concerned.

For further information contact:

Note: This announcement and other press releases are available to view at the Company's website: www.gusbourneplc.com

Note to Editors

Gusbourne PLC ("the Company") is engaged, through its wholly owned subsidiary Gusbourne Estate Limited (together the "Group"), in the production and distribution of a range of high quality and award winning English sparkling wines from grapes grown in its own vineyards in Kent and West Sussex. The majority of the Group's mature vineyards are located at its freehold estate at Appledore in Kent where the winery is also based.