By Andrew Starke
Gage Roads Brewing has announced plans to expand its operation over the next four years with contract brewing to play a more important role in the WA brewer’s strategy.
The brewer told the Australian Stock Exchange (ASX) it had secured a credit facility limit increase from $4.2 million to $9.7 million.
Gage Roads expects to contract brew an estimated 1.5 million cartons in Financial Year 2012.
”Gage Roads Brewing is pleased to announce that the credit facility contemplated in the announcement dated 15 June 2011 has been executed,” it said in a statement to the ASX.
”The agreement with the ANZ Banking Group Limited extends the term of the current $4.2 million credit facility and increases the limit of the facility by $5.5 million to $9.7 million.”
The facility is secured by company assets and a guarantee from Woolworths, which owns a 25 percent stake in the boutique brewer.
Gage Roads intends to apply the $5.5 million funds raised from the refinancing of the facility towards a $9.6 million, four year capital expansion program of the existing Palmyra (WA) based production facility commencing this month (July) and concluding June 30, 2015.
The capital expansion program is designed to increase the brewer’s total production capacity from the current 1.2 million cartons per annum to 2.9 million cartons per annum of beer, cider and other beverages by Financial Year 2015.