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Successful capital raise accelerates distillery’s plans for expansion

Contributor:
Fuseworks Media
Fuseworks Media

West Coast business Reefton Distilling Co. have reached yet another milestone as they work towards realising their plans for business growth.

Founder and Managing Director Patsy Bass announced that as at 11.45am on Thursday 20th February, their Investment Offer had achieved their first target of $2m.

Bass went on to add, "we are enormously grateful to both our foundation investors for providing the financial support we needed to get established and to all of the new investors who have come on board to help enable our expansion."

The company had already raised additional funds through their pre-emptive share offer to existing shareholders pre-Christmas and chose a short public window to reach the minimum $2m of investment.

Having received a number of requests from people asking for more time to review the offer information, (the offer was publicly released less than two weeks ago) Reefton Distilling Co. have extended the offer to run until 9pm on 2 March 2020. Patsy Bass added "Each additional investment received will be used to help strengthen our future."

Messages of Support

Investors are made up of both private individuals who have invested the minimum of $5000 to larger wholesale investors, many of whom have been watching their progress over the last sixteen months. 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."

Patsy said, "The messages of support that accompanied investments have also been extremely encouraging. We thank everyone who took the time to tell us why they invested, and we would like to assure everyone that we will be doing our utmost to continue to grow our business and take our products and story to the world".

New Premises

Having completed the due diligence on their preferred site and with a verbal agreement on all consents, Reefton Distilling Co. are currently awaiting receipt of the formal documents from Buller District Council. This will then allow them to complete the purchase.

Until the legal process has been completed they are, as yet, unable to share anymore details but expect to make an announcement in the very near future.

Commercial Finance Options

Securing the minimum $2m of equity investment now provides Reefton Distilling Co. with access to a number of debt financing options. They are currently awaiting a decision from Development West Coast (DWC) on their application for $1.85m commercial finance to fund land, buildings and fit out costs.

Should their application be successful, those funds will be used for land/ buildings and/or fit out depending on quantum. New shareholder equity used to secure these up front, will be redirected to working capital and growth.

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