Lark Distilling Co has announced it has successfully completed the first part of its planned $22.5m equity raise, with the institutional placement component raising $6.5m.
The distiller revealed earlier this week that it was looking to raise $22.5m in capital, with a conditional placement to be undertaken with existing company directors. Lark said the first part of the raise saw strong demand from both existing institutional and sophisticated shareholders and new investors.
Lark CEO, Sash Sharma, said: “We are very pleased with the strong level of support from shareholders as we execute on our strategic priorities. We look forward to continuing to build a globally recognised and differentiated luxury brand in Lark with the benefit of our newly announced long-term barrel supply agreement with Seppeltsfield Wines.
“The proceeds from the Institutional Placement will contribute to providing Lark with balance sheet flexibility to invest in the Lark brand and facilities to drive the export strategy and accelerate growth.”
The Conditional Placement that Lark also intends to undertake sees Seppeltsfield Wines Pty Ltd, an entity associated with Warren Randall, committed to subscribe for $14.5m; Domenic Panaccio committed to subscribe for $0.25m and David Dearie has committed to subscribe for $0.25m.
The Conditional Placement is subject to shareholder approval at an extraordinary general meeting, which Lark has confirmed will take place on Friday, 30 August. The EGM will be held at Gadens, Level 13, Collins Arch, 447 Collins Street, Melbourne Victoria 3000 and virtually via a webinar conference facility.
In its statement to the ASX about the institutional placement, Lark said its major shareholders Neill Family Office, Perennial Value Management and Lee Ming-Tee participated and confirmed their intention to vote in favour of the conditional placement at the upcoming EGM.
Lark is also planning a further equity raise through a Share Purchase Plan (SPP), which will invite eligible Lark shareholders to subscribe for up a maximum of $30,000 of new shares. Lark said it is aiming to raise up to $1m through the SPP.
Earlier this week, Lark also revealed it has entered into a 10-year strategic partnership with Seppeltsfield Wines, that will give Lark access to rare, fortified, Tawny, Muscat, Tokay, PX and Olorosso barrels. The distiller said these barrels will be central to its premium portfolio offering and ongoing expansion strategy, both domestically and internationally.
