Argonaut, as Lead Manager to the Placement and Underwriter to the Entitlements Offer, has successfully raised A$10.1 million for Gage Roads Brewing Co Limited (ASX: GRB) (“Gage Roads” or “the Company”) via a placement to institutional investors of $1.6 million in September and a fully underwritten 4 for 5 non-renounceable entitlement issue to existing shareholders to raise a further $8.5 million.
Proceeds of the raising will be used to implement the Company’s 'Returning to Craft' strategy as well as finance the selective buyback of existing shares held by Woolworths Limited (ASX: WOW) and refinancing existing debt.
Commenting on the capital raising, Gage Roads Managing Director, John Hoedemaker said, “I wish to thank shareholders and the new institutions for their support of our 5-year ‘Returning to Craft’ strategy. I would also like to thank Argonaut Securities for lead-managing the placement, the entitlement issue and its underwriting.
The funds provide a very solid footing from which to undertake our ‘Returning to Craft’ strategy. As one of Australia’s largest independent craft breweries with new markets ahead of us, the management team is excited to conclude the capital raising process and focus on delivering on the milestones of our strategy.”
Argonaut is delighted to provide support to Gage Roads and highlights the strength of the Argonaut business in supporting WA based companies across a wide range of industries.
Additional information regarding Gage Roads and the capital raising can be found on the Company’s website at www.gageroads.com.au.
