By Andy Young
Gage Roads Brewing Co has completed its capital raising to help it buy back the Woolworths shares in the company.
In August the brewer announced its plans to try and raise $10.1m in order to buy out Woolworths and also pay down debt and provide working capital. It has now said it has managed to raise $8.5m before costs, plus a $1.6m placement to institutional investors in September.
In a statement to the ASX the brewer said that it intends to use the funds as follows:
- Buy-back of Woolworths’ shares – $1.6m
- Retire debt – $4.7m
- Working capital – $3.2m
- Cost of raising – $0.6m
Total funds – $10.1m
The move will see Gage Roads regain its independence, as part of its five-year ‘returning to craft’ strategy. The strategy will also see the brewer enter broader channels to market, deleverage the balance sheet and participate in the growing craft beer market.
Managing Director John Hoedemaker said: “I wish to thank shareholders and the new institutions for their support of our five-year ‘returning to craft’ strategy. I would also like to thank Argonaut Securities for lead-managing the placement, the entitlement issue and its underwriting.
“The funds provide a very solid footing from which to undertake our ‘returning to craft’ strategy. As one of Australia’s largest independent craft breweries with new markets ahead of us, the management team is excited to conclude the capital raising process and focus on delivering on the milestones of our strategy.”