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Reefton Distilling Investment Offer opens, 800 expressions of interest

Contributor:
Fuseworks Media
Fuseworks Media

Seeking to raise $3.5m in capital to fund plans for business expansion, West Coast business Reefton Distilling Co. launched their investment offer providing both private and wholesale investors with the opportunity to invest in their growing venture.

The offer opened to the public who had pre-registered their interest via the Snowball Effect online platform on Monday 10th February, having received over 800 expressions of interest.

Reefton Distilling Co.’s current shareholders were given the opportunity to purchase further shares in a pre-emptive offer which closed prior to Christmas and have already pledged further capital to help fund "their" distillery’s expansion.

Solid Foundations

Local Reefton businesswoman Patsy Bass heads the company supported by Chair Jo Bransgrove, a group of specialist business advisors and mentor Sir David Levene.

Sir David and his team have been supporting Patsy from the outset and Patsy recalls that first business meeting when she asked Sir David if he would review the Reefton Distilling Co. Business case. "I have known Sir David for over 20 years since we were both involved with Outward Bound New Zealand. I am fortunate to have him as a dear friend, but I also knew that he would be thorough and honest in his appraisal and not just tell me what I wanted to hear."

Patsy left that meeting confident that her idea was sound and has built the business up to be the producer of New Zealand’s fastest growing gin brand, Little Biddy Gin, in a little over the two years since that first meeting.

Research and groundwork completed early on has ensured that this is a business built on solid foundations and the company plan to appoint additional capacity at both management and board level to best position them as they move into the next stage. Patsy added, "We will actively seek investors with suitable industry experience from this investment round to become part of our governance team".

Spirited start raises over $1m

The Investment Offer is off to a spirited start reaching over $1m after just a few days. Funds invested to date are from both private individuals (who are pledging the minimum $5001 and above) to larger wholesale investors seeking to secure a significant proportion of the shares on offer.

It seems that Little Biddy Gin and founder Patsy Bass have gained favour with both the New Zealand public and industry leaders who have been watching their progress during their first year of operation.

People like Ben Gough, Founder and Managing Director of Tailorspace (part of the Ben Gough Family Office) have invested in this round. This is part of their commitment to making a positive impact locally and globally by actively investing in talented and progressive businesses and individuals.

Ben Gough commented "What really interested us about Little Biddy was the combination of a premium quality product, Patsy’s passion, the capability that she has surrounded herself with, and the economic impact this business is having on Reefton and regional South Island."

Scaling up to meet demand

This is Reefton Distilling Co.’s second capital raise after successfully securing $1.385m in early 2018, when they were merely a concept. At that time, they indicated that they expected to need to raise additional capital in 12 to 18 months, to allow them to scale up operations.

The $3.5m investment sought will be used to purchase land and buildings, and expand the production facility so that they can meet demand and invest in the production of their first premium single malt whisky, Moonlight Creek. A new facility is under offer with due diligence nearing completion.

Patsy commented, "While tempered with the realities of a start-up experiencing strong growth, our small team has achieved a great deal in a very short time, and we are absolutely committed to realising the opportunities in front of us for the benefit of all members of our Reefton Distilling Co. family’.

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