- Mighty Craft (MCL) is participating in a funding initiative, the Whiskey Development Syndicate (WDS), which will allow the company to accelerate whisky production
- The WDS will seek to raise up to $10 million, which will be used to accelerate the production of whisky using Mighty Craft’s industry capability and production capacity
- As part of the agreements, MCL will offer three warrants to purchase one fully-paid ordinary share in Mighty Craft for every five shares an investor purchases in WDS
- The funding initiative will allow Mighty Craft to accelerate whisky production, build brand awareness and retain a significant amount of the value created for shareholders
- MCL shares are up 3.45 per cent at market close, trading at 30 cents
Mighty Craft (MCL) is participating in a funding initiative, the Whiskey Development Syndicate (WDS) which will allow the company to accelerate whisky production and spirits growth.
The WDS is a separate legal entity to MCL and will seek to raise up to $10 million, which will be used to accelerate the production of whisky using Mighty Craft’s industry capability and production capacity.
As part of the agreements between WDS and Mighty Craft, Mighty Craft will offer three warrants to purchase one fully-paid ordinary share in Might Craft for every five shares an investor purchases in WDS.
The price for exercising the warrants is fixed at 35 cents and must be exercised before September 30, 2024, and up to six million Mighty Craft warrants are on offer.
This partnership will also facilitate Mighty Craft’s ambition to achieve 1.5 million litres of whisky under maturation by 2025.
“Whisky is a unique asset class that appreciates significantly in value over the maturation cycle – the issue the industry has always faced is locking up capital for the maturation period which can be three to five years or more,” Managing Director Mark Haysman said.
Due to its longer maturation period, whisky typically presents a material working capital
commitment to build whisky inventory levels to scale.
“This collaboration will allow Mighty Craft to build its whisky inventory without using current cash reserves whilst retaining a significant portion of the value created through the cycle for MCL shareholders.”
The funding initiative will release capital for the company, providing WDS investors with the opportunity to invest in something tangible, while allowing Mighty Craft to accelerate whisky production, build brand awareness and retain a significant amount of the value created for Mighty Craft shareholders.
MCL shares were up 3.45 per cent at market close, trading at 30 cents.