- Digital Wine Ventures (DW8) plans to raise up to $6.15 million to expand its WINEDEPOT platform
- While the platform is still solidifying its presence in Australia, it plans to expand into key global wine markets
- $5 million will be raised through a share placement to institutional and sophisticated investors
- Company directors intend to contribute a further $150,000, however, this is subject to shareholder approval
- Additionally, Digital Wines will conduct a share purchase plan to raise $1 million
- Company shares are down 12.5 per cent and are trading for 3.5 cents
Digital Wine Ventures (DW8) has announced it hopes to raise up to $6.15 million to fund the expansion of its WINEDEPOT platform.
WINEDEPOT is a cloud-based technology platform that has proven to be a highly efficient way to buy and sell wine.
While the platform is still solidifying its presence in Australia, it plans to expand into other wine markets, such as China, the U.S., Hong Kong, Singapore, the U.K., Canada, and New Zealand.
The company has already received firm commitments from institutional and sophisticated investors to raise $5 million through a share placement. DW8 directors intend to contribute a further $150,000, however, this is subject to shareholder approval.
Additionally, Digital Wines will conduct a share purchase plan to raise $1 million.
The share placement will issue 200 million new fully paid ordinary shares at 2.5 cents per share. Additionally, company directors will subscribe for six million new fully paid ordinary shares at 2.5 cents each. If shareholders approve, directors will contribute $150,000 to the raise.
The issue price represents a 37.5 per cent discount to the last traded share price of four cents, 19.2 per cent to the 15-day volume-weighted average price (VWAP) and 3.2 per cent to the 30-day VWAP.
The placement is expected to be completed on August 6, 2020.
Share purchase plan
Digital Wine Ventures will undertake a non-underwritten share purchase plan (SPP) to raise $1 million at 2.5 cents per share.
Existing eligible shareholders are able to participate in the raise, regardless of the size of their holding, at the same issue price of the placement without incurring brokerage or transaction costs.
Eligible shareholders may apply for up to $30,000 worth of new shares, which will rank equally with existing ordinary shares in DW8.
The SPP will close on Friday, August 21, and the new shares will be issued on Tuesday, September 1, with trading to begin on the following day.
Additionally, the company will issue 3,509,560 fully paid ordinary shares at 2.5 cents each to key staff members as part of its employee securities incentive plan, which was approved at last year's annual general meeting.
The bonus shares will be issued in lieu of cash bonuses.
Company shares are down 12.5 per cent and are trading for 3.5 cents each at 11:19 am AEST.