Margaret River winemaker Palandri Ltd has told the AIM stock exchange in London that a subsidiary has launched a supplementary prospectus to raise $7.5 million for the purchase of a Great Southern vineyard.
Margaret River winemaker Palandri Ltd has told the AIM stock exchange in London that a subsidiary has launched a supplementary prospectus to raise $7.5 million for the purchase of a Great Southern vineyard.
Palandri Investment Management Ltd is seeking the funds as manager of the Agriculture Property Trust, which intends to buy the Frankland River Vineyard 2, which is currently owned by Palandri Wine Production Ltd.
The acquisition has been arranged so that lots of the vineyard can be transferred as funds are raised.
Palandri Wine Production will use funds raised to reduce group debt.
The trust was established in May to buy a Harvey vineyard and is still raising funds for that purpose.
Palandri Investment Management is also seeking to raise at least $4 million through its Margaret River Wine Business - Wine Bond Series 1 to fund market expansion in the UK and Europe.
Below is the announcement from the AIM exchange in London:
Palandri Investment Management Limited, a wholly owned subsidiary of Palandri Ltd, has issued a Supplementary Product Disclosure Statement in relation to the Agricultural Property Trust ("the Trust"), of which it is the manager.
The Trust was launched in May 2005 to raise monies for the acquisition of vineyard properties, initially the Harvey Vineyard in Western Australia, which would then enter into arrangements with members of the Palandri Ltd Group for the management, planting, harvesting and production of wine from the grape output of the vineyards. The fundraising for the Harvey Vineyard is ongoing.
The Supplemental Product Disclosure Statement has been issued to raise another tranche of monies for the acquisition of the Frankland River Vineyard 2, which is owned by Palandri Wine Production Limited, a subsidiary of Palandri Ltd. Palandri Wine Production Limited has granted a call option for a period of 12 months to the Trust to acquire the vineyard for a consideration of A$7.5m, and the acquisition may be phased such that lots are transferred as funds are raised by the Trust or Palandri Wine Production Limited may provide deferred terms in relation to the consideration. The Board of Palandri Ltd believe that the call option will have been exercised and the vineyard sold to the Trust by June 2006.
Proceeds received by Palandri Wine Production Limited will be utilised in the first instance to reduce Group indebtedness.
The Board of Palandri Investment Management Limited envisage that further vineyard assets will be acquired by the Trust in due course. The current agreements in place in respect of the management, planting, harvesting and production of wine from the grape output of the vineyards with members of the Palandri Ltd Group will continue to be provided by members of the Palandri Ltd Group once the vineyard has been sold to the Trust.