East Imperial PLC (LSE:EISB) saw its shares jump nearly 30% higher in Monday morning’s deals as it landed £2.2mln of convertible loan funding to support working capital as the gin-mixer brand expands its footprint.
Chinese strategic investor and partner Wen Hua International, which distributes the company’s products in Macau and mainland China, is purchasing the notes – investing via two tranches, of £1.46mln and £733,333 respectively.
The loan is convertible into shares, at a minimum conversion price of 1p which was a 15% premium prior to today’s announcement.
It is secured via a debenture over the company's wholly owned Singapore-incorporated subsidiary and a charge over shares held by chief executive Tony Burt.
East Imperial said its directors “strongly believe” that the convertible loan funding is the company’s best available option for securing investment in the near term.
"I'm extremely pleased to add such an important cornerstone investor to our investor group, who brings with them unparalleled experience and knowledge in a key strategic region for East Imperial,” Tony Burt said in a statement.
He added: “We continue to have a huge opportunity ahead of us, and I'm confident we will deliver significant progress this year and beyond.
“We will use the funds raised to capitalise on the future opportunities ahead of us, particularly to accelerate our growth in the strategically important US and explore further opportunities with WHI in Asian markets with greater sales resources and some new exciting product innovations."
WHI chief executive Jason Ieong added: “Being a leading distributor of imported spirits and wines in China, we are excited to extend our business relationship with East Imperial, the global purveyor of ultra-premium beverages.
“With our support, we believe East Imperial will be able to fast-track its global development in all strategic markets and capitalise on the premiumisation trend in the beverage category globally."
In London, East Imperial shares were up 0.25p or 29.41%, changing hands at 1.10p valuing the nano-cap beverage company at just over £3.7 million.