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DW8 seeks $1.6M cash boost to expand WINEDEPOT

Consumer Discretionary
ASX:DW8
24 October 2019 23:10 (AEST)

Digital Wine Ventures will raise $1 million through a placement to sophisticated investors worth $825,000 combined with a director participation of $175,000.

Cash raised from the placement will fund additional human resources, technology research and development, marketing and advertising, and general working capital.

The private placement will issue 126,923,077 new fully paid ordinary shares at $0.0065 per share, with 31,730,769 free attaching options.

DW8 directors have committed to taking up 26,923,077 shares in the placement to help raise $175,000 of the total.

Digital Wine Ventures has had a strong month so far with the addition of new customers such as Casella Family Brands: Australia’s largest family-owned wine business.

It has also grown its team this month with the introduction of Richard Van Ruth, taking on the role of Business Development Manager, and Anna Donald, who is the new Inventory and Operations Manager.

In addition to the placement, the company plans to undertake a rights issue to raise approximately $680,000 through the issue of shares and free-attaching options at an issue price of $0.0065 per new share.

DW8 has engaged Peak Asset Management to act as Lead Manager for the placement and the rights issue.

Founder and Executive Director of Peak Asset Niv Dagan is pleased to help DW8’s CEO Dean Taylor execute his vision.

“Dean is a serial entrepreneur, with an outstanding track record and strong business acumen,” Niv said.

“He has successfully built and exited over seven ventures in the wine and technology sectors and we believe that his WINEDEPOT project has the potential to totally revolutionise the global wine supply chain,” he continued.

The placement is expected to be completed on November 1 2019, while the rights issue is expected to be completed between now and the end of February 2020.

Digital Wine Ventures’ shares are unchanged this morning, trading for 0.7 cents apiece as at 11:59 am AEDT.

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