- Mighty Craft (MCL) is planning to raise some extra funds by offering a share placement to institutional investors
- The liquor business placed its shares in a trading halt until Friday to give it time to plan and execute an institutional placement
- This is the second time in recent months MCL has tapped investors for cash, raising $29 million to buy Adelaide Hills group in July
- Mighty Craft ended September with $4.84 million in the bank, having spent $5.45 million, meaning it could run out of cash by December
- Company shares last traded at 32 cents each on October 26
Mighty Craft (MCL) is planning to raise some extra funds by offering a share placement to institutional investors.
The liquor business placed its shares in a trading halt until Friday, October 29, to give it time to plan and execute an institutional placement.
This is the second time in recent months MCL has tapped investors for extra cash, raising $29 million back in July to help it buy fellow booze business Adelaide Hills Group.
Mighty Craft ended September with $4.84 million in the bank, having spent $5.45 million during the three month period.
At that rate of spent, the whiskey producer would run out of cash before the end of December — but MCL insists its costs will soon reduce.
The company explained the costs of acquiring Adelaide Hills affected its bottom line, as did COVID-19 restrictions in Sydney and Melbourne.
Mighty Craft believes business will pick up again as it heads into Christmas and as lockdown restrictions continually lift.
Additionally, MCL said it would soon receive the proceeds from its $3.55 million sale and leaseback of the land and buildings at Dromana.
Before today’s trading halt, Mighty Craft was trading at 32 cents each on Tuesday, October 26.