- Digital Wine Ventures (DW8) will acquire the B2B liquor business Kaddy for $6.75 million worth of cash and via the issue of 484.9 million shares
- The company came out of a trading halt today to announce the acquisition as well as the results of a $14.75 million capital raise
- DW8 says acquiring Kaddy will create a leading online marketplace servicing Australia’s $17 billion wholesale liquor market
- It plans to use $5.3 million from the capital raise as expansion funding for the soon to be acquired Kaddy marketplace
- Shares in Digital Wine Ventures have come out of a trading halt and are down 4.55 per cent at 6.3 cents each at 12:08 pm AEDT
Digital Wine Ventures (DW8) has announced it will acquire the B2B liquor business Kaddy for $6.75 million.
The online liquor company will also issue 484.9 million of its own shares as consideration for the company, which boasts over 1500 registered wholesale buyers and more than 400 suppliers.
DW8 argues acquiring Kaddy will create a market leading online marketplace servicing Australia’s $17 billion wholesale liquor market.
Under the deal, Kaddy Cofounder Mike Abbott will join the DW8 Board as an Executive Director, while the ASX-lister also has the option of issuing an extra $1 million in capital to Kaddy via convertible notes.
Digital Wine Ventures CEO Dean Taylor said the entire transaction was transformational.
“The combination of a world class B2B marketplace with a tech-enabled national logistics platform will create an unrivaled value proposition that’s relevant to every liquor licence holder in the country,” Mr Taylor said.
“Kaddy strongly complements our technology ecosystem and fast-tracks our ability to develop a stronghold in Australia’ $17 billion wholesale liquor market.”
DW8 came out of a trading halt on Friday morning to announce the acquisition, as well as the results from its capital raise.
The business said it had received commitments for $12.75 million placement, with plans to raise additional funds via a share placement plan.
Shares in Digital Wine Ventura have come out of a trading halt and are down 4.55 per cent at 6.3 cents each at 12:08 pm AEDT.