Marlborough Wine Estates Group Limited (NZX: MWE) has announced it is is seeking to raise up to $2 million in new capital to progress growth opportunities in both New Zealand and international markets.

The funds raised through the Share Purchase Plan (SPP) will be used to retain higher inventory levels to meet expected future demand; investment into marketing, particularly MWE’s online strategy; and international market development.

The Issue Price for the Shares is 25 cents per share, representing a 56.7% discount to the five day VWAP (volume weighted average price) during the last five trading days on the NZX prior to the Record Date.

Revenue and operating profit of MWE have both risen significantly since the company first listed in 2016, with revenue of $6.4 million and the first profitable financial year since listing for the year ended 30 June 2020.

MWE’s most recent results for the six months to 31 December 2020 (which were released to the market on 11 February 2020) show increasing sales of both its OTU and Music Bay brands.

In recent times, Marlborough Wine Estates has achieved commercial milestones including listing of its range in both of New Zealand’s largest grocery chains and establishing distribution relationships in multiple international markets.

The company has seen rapid sales growth in New Zealand and has already shipped sizeable orders to new distributors in Australia, Canada, Malaysia and Singapore, with continuing orders from other international markets.

In addition, renowned winemaker, Jeff Clarke, has recently been appointed as Winemaker for OTU Estate Wines.

The Board has also been strengthened with the appointment of independent director, Christine Pears, who has more than 20 years leadership experience in the wine industry.

Key Dates:

Closing Date: 5pm on Friday 5 March 2021
Allotment and Settlement of Shares: Friday 12 March 2021
Commencement of trading in shares on NZX: Friday 12 March 2021

To see Marlborough Wine Estates on the NZX, click here.

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