Successful Refinancing of Banking Facilities

The Artisanal Spirits Company (AIM: ART), the creator of outstanding, limited-edition whiskies and experiences around the world, and owner of The Scotch Malt Whisky Society ("SMWS"), Single Cask Nation ("SCN"), J.G. Thomson and Artisan Casks has successfully concluded negotiations and signed a new financing agreement with Santander plc to replace, and on preferential terms to, its current revolving credit facility ("RCF") which was due to expire on 19 June 2026.

The key elements of the improved terms of the new Asset Based Lending Facility ("ABL") with Santander plc are;

Ø £35m facility availability

Ø 2.05% headline margin rate

Ø 4-year term to September 2029

The new financing agreement represents an increased facility by £13.5m at a 20bps lower headline margin rate and no financial covenants, covering a 4-year term.

Following completion, The Royal Bank of Scotland RCF of £21.5m has been completely repaid, alongside the remaining term loan and Lombard cask wood funding, totalling £0.5m.

The Company's remaining borrowings outwith the new Santander facility, with Ferovinum (at H1-25; £8.9m), will be repaid as each tranche reaches the 2-year tenor, the final repayment due in August 2026.

As previously announced, H1 2025 net debt rose to £29.5m (H1 2024: £27.0m) due to US sales phasing. We expect reduction in H2 as profits come through, though some US cash receipts will fall into FY26. We believe net debt has peaked as stock investment shifts to replenishment.

Andrew Dane, CEO of The Artisanal Spirits Company, commented:

"We are committed to continuing to ensure that the business is "future-fit" for the opportunities ahead and I am delighted to announce the completion of the new facility with Santander that contains a longer term, greater headroom and lower margin than our existing facilities.

"This refinancing supports our broader strategic initiatives and delivery of results in line with expectations. We continue to diversify our revenue streams, supported by a rigorous focus on cost discipline and operational efficiency, where we are actively streamlining our cost base, and this reduction in interest rate further supports this drive."