Top Shelf International (TSI) has announced a binding term sheet in relation to a $5m sale and leaseback of the farmland and structural improvement assets at its agave farm, located at Eden Lassie in Queensland’s Whitsundays region.

The sale does not include the agave farm’s distillery plant, equipment assets or the agave plants. TSI said the proceeds from the sale will be used for working capital purposes including the further reduction of debt.

In a statement to the ASX, TSI said: “As previously disclosed, the Company has been investigating a sale and leaseback transaction as part of its capital strategy that previously contemplated the sale of its agave distillery plant and equipment assets, in addition to land assets.

“The agreed sale of only the agave farmland and structural improvement assets enables the Company to retain full ownership and control of the agave agronomy activities and distillery operations.”

The binding term sheet reflects the following key terms inclusive of:

  • Total purchase consideration of $5m
  • Initial 10-year term with option to extend for a further five years
  • Commencing lease cost of $0.5m per annum
  • Right for the Company to repurchase the assets at any future date for a minimum of $6.5m.

Top Shelf said the deal has been made with an entity related to non-executive director Stephen Grove and that the deal is still subject to shareholder approval at an Extraordinary General Meeting.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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