- Mighty Craft (MCL) secures a new $20 million debt facility with PURE Asset Management that replaces all previous existing debt facilities which totalled $13.5 million
- This results in a net increase of $6.5 million and will be in place for three years
- Key terms include a 8.5 per cent interest rate plus a pay away of sales and distribution right equivalent to approximately 0.4 per cent of the company’s wholesale revenue in the first year
- As part of the facility, the company will issue five million detached warrants to PURE at 35 cents a piece and are exercisable up to seven days prior to the repayment date
- Shares in Mighty Craft are up 2.94 per cent, trading at 17.5 cents as of 2:34 pm AEST
Mighty Craft (MCL) has secured a new $20 million debt facility with PURE Asset Management that replaces all previous existing debt facilities which totalled $13.5 million.
This results in a net increase of $6.5 million and will be in place for three years.
MCL Managing Director Mark Haysman said the company has a strong relationship with PURE and thanked them for its ongoing support.
“This facility allows us to responsibly manage growth and realise key market opportunities available to us.
“With this facility in place, in combination with our capital management program, we are set to execute against our growth strategy for FY23.”
Key terms include a 8.5 per cent interest rate plus a pay away of sales and distribution right equivalent to approximately 0.4 per cent of the company’s wholesale revenue in the first year.
PURE Director Tim Callan said his team is happy to be supporting Mighty Craft given the growth profile and near-term profitability of the company.
“The pandemic was a difficult operating environment for all hospitality businesses, yet we now see these headwinds turning to tailwinds.
“Many strategic investments have been made during this time, and look forward to seeing value unlocked as Better Beer and the Adelaide Hills Group execute their respective growth ambitions.”
As part of the facility, the company will issue five million detached warrants to PURE at 35 cents a piece and are exercisable up to seven days prior to the repayment date.
The warrants also have a three-year term.
Shares in Mighty Craft were up 2.94 per cent, trading at 17.5 cents as of 2:34 pm AEST.