What does the company do?
This investment was from GB Fruit Company plc, part of the Global Berry group. The Global Berry group of companies was set up in 2015 with the goal of increasing the amount of fruit grown by British farmers whilst at the same time caring for the environment and the people within it. The group own glasshouse strawberry farms in the UK as well as a packing facility.
By farming using controlled environments and renewable energy, like the glasshouses owned by Global Berry, the group can produce more homegrown food more efficiently and in a more environmentally friendly way than many other methods of production. The growing season can be extended by using technologies that control light, humidity, temperature and crop growth in an enclosed controlled environment.
The group’s revenues come from selling its strawberries to a variety of retailers which will depend on the strawberry yield and price. Global Berry aim to agree contracts with various retailers for each season’s crop, providing price certainty each season. This is because the production profile of strawberries grown in advanced glasshouses is more certain than field or polytunnel grown strawberries, where only a proportion are usually sold on seasonal contracts, with the rest being sold on a weekly spot basis. A higher price is paid during the spring and autumn months due to the lack of home-grown supply.
Why did the company raise money?
At the time of the investment offer, the group owned 2 glasshouse strawberry farms of 3 and 11 hectares in Somerset in the southwest of England, as well as its own packing facility at the 3 hectare site.
The funds raised through this investment through its subsidiary company GB Fruit Company Plc (owned by Global Berry Limited) were used to expand the group’s operations with a 3rd glasshouse farm at Nocton, Lincolnshire. The funds were used to refurbish 2 existing glasshouses on the farm and the construction of an additional glasshouse on the farm, plus initial operating costs.
How does the company expect to repay the investment?
GB Fruit Company expects to repay the investment through its own revenues from selling the produce it grows.
How is the company making an impact?
The food industry accounts for a significant proportion of global greenhouse gas emissions so it is a key sector in the climate challenge.
Global Berry’s advanced glasshouses allow the company to grow strawberries in the UK, over a longer growing season, and with lower environmental impacts. By extending the growing season in the UK, the strawberries grown by Global Berry can offset strawberries which would otherwise be imported - reducing food miles while also allowing the company to focus more on flavour and quality rather than longer shelf life.
The Nocton farm uses solar panels to provide the electricity needed and a biomass boiler to provide its heat requirements. The glasshouses use CO2 to enhance the growing environment and Global Berry sources this from a supplier that takes the CO2 that is produced as a by-product from anaerobic digestion plants (another form of renewable energy).
Key terms
The interest and capital repayment is paid in equal instalments every 6 months over the life of the investment.
This investment has first ranking security over all of the assets of GB Fruit Company under a package of security documents including:
- security agreements by way of fixed and floating charge over all the assets of GB Fruit Company
- share security over all the issued share capital of GB Fruit Company
- various direct agreements which provide the Security Trustee with certain rights such as being notified of a termination event or, in some cases, stepping into the company'ss shoes upon a termination event under certain project contracts.
The company can choose to repay the Debentures at any point from 1 September 2023 onwards subject to paying an early redemption fee and giving 20 business days's notice. The early redemption fee, in this scenario, will include:
- an amount of interest that provides you with a return on your capital up to the point of the redemption that equates to a 7% effective rate of return; and,
- an additional amount of interest equivalent to the proceeding 6 months's interest payment
The company can also make an early repayment in certain circumstances, such as a change of control of the company (for example, if some or all of the company was sold to a new owner) or a regulatory/tax requirement.
See the Debenture Deed for details of all circumstances in which the option for early repayment may be exercised.Documents
Payment schedule
This table gives a breakdown of what is due to be paid back on this investment, based on an example investment of £1,000.
| Payment date | Capital repayment | Interest | Total |
|---|---|---|---|
| 31 August 2022 | £66.67 | £22.80 | £89.47 |
| 28 February 2023 | £66.67 | £22.80 | £89.47 |
| 31 August 2023 | £66.67 | £22.80 | £89.47 |
| 28 February 2024 | £66.67 | £22.80 | £89.47 |
| 30 August 2024 | £66.67 | £22.80 | £89.47 |
| 28 February 2025 | £66.67 | £22.80 | £89.47 |
| 29 August 2025 | £66.67 | £22.80 | £89.47 |
| 27 February 2026 | £66.67 | £22.80 | £89.47 |
| 31 August 2026 | £66.67 | £22.80 | £89.47 |
| 26 February 2027 | £66.67 | £22.80 | £89.47 |
| 31 August 2027 | £66.67 | £22.80 | £89.47 |
| 29 February 2028 | £66.67 | £22.80 | £89.47 |
| 31 August 2028 | £66.67 | £22.80 | £89.47 |
| 28 February 2029 | £66.67 | £22.80 | £89.47 |
| 31 August 2029 | £66.62 | £22.80 | £89.42 |
| Total | £1,000.00 | £342.00 | £1,342.00 |