ASX-listed Mighty Craft Limited (MCL) has entered into an arrangement with the founders of Sparkke, Rose Kentish and Kari Allen, which sees MCL cancel its shareholding in Sparkke and Mismatch Brewing take over The Whitmore Brewpub.
While the full details of the deal remain confidential, as well as cancelling its shares in Sparkke, MCL has agreed to forgive any liability owed to it under the convertible notes in Sparkke, with a total face value of $1.5m.
Kentish and Allen said it was with equal measures of satisfaction and sadness that they were announcing that Mismatch would take over the leasehold for Sparkke at the Whitmore, effective 4 October 2022.
Kentish said: “We’re proud that we developed and launched an incredibly successful, award-winning venue that gained local acclaim and national attention. The harsh impacts of 2020 continue to be felt in Adelaide’s current trading environment.
“In keeping with our commitment to shareholder value, the community in which we operate, and our pub staff, the decision to put our beautiful venue into the hands of a significantly better resourced operator is the right one.
“We appreciate and acknowledge those who continue to battle it out in the CBD and we are happy to be members of an industry that is so resilient and holds so much talent.”
She added: “We’ve worked well and collaboratively with Mighty Craft and we’re sincerely grateful to them for their contribution to the negotiated outcomes which sees considerable value return to our shareholders and allows us to fully focus on our future growth.
“We’re still brewing and distilling premium, delicious beverages and we’ll continue to be in the finest bars, restaurants, bottleshops and pop ups around Australia.”
MCL’s CEO and Managing Director, Mark Haysman, said he believes The Whitmore can leverage the strength of the Mismatch brand to return to pre-COVID levels and support the growth of Mismatch in Adelaide.
The Brewpub contains an operational brewery where Mismatch products will be brewed and fits the successful venue model MCL already enjoys with Jetty Road and Slipstream.
“This is a great outcome for all parties,” Haysman said.
“Mighty Craft has been working on divesting non‐core assets and simplifying our business, which will in turn enable us to focus on our priority brands and further accelerate and grow those priority brands.
“This transaction is a demonstration of the team executing those plans and is a good result for the Sparkke team, who can now focus on building their spirits business. Importantly for Mighty Craft and Mismatch, we now have the opportunity to takeover an award‐winning brewpub. We look forward to Adelaide’s favourite craft brand settling into The Whitmore.”
Adelaide is invited to come and say goodbye to Sparkke at the Whitmore, with a Thank You Adelaide party on Saturday, 1 October featuring live music, special menus, tattoos and an onsite barber.