WINEMAKER Palandri has radically changed its capital raising plans and now wants to list on the London Stock Exchange’s Alternative Investment Market.
In response to its AIM plans Palandri has withdrawn a prospectus, released in December, for a $7.5 million convertible note issue.
The changes follow the National Australia Bank’s demand that Palandri repay its $9.2 million debt by June 30.
As part of a moratorium negotiated with the bank Palandri’s executive chairman Darrel Jarvis has agreed to repay $1 million immediately and the company must repay a further $1 million by February 27.
It is hoping to raise $2.5 million in the UK in the next few days and a further $7.5 million prior to listing on AIM.
In documents lodged with the Australian Securities and Investments Commission Palandri says it is “currently negotiating with two United Kingdom entities” to finalise fund raising, which will be provided in the form of convertible notes.
Palandri has mandated Grant Thornton as its nominated adviser, or NOMAD, for the AIM listing, and is “currently settling the terms of the engagement letters with the other consultants who are to be involved”.
“It is the belief of both [the] NOMAD and Palandri that listing on AIM is achievable by May 2004,” the documents say.
The financial restructuring follows a tough trading period for Palandri, which upset many traditionalists in the Margaret River regions with its aggressive growth plans.
Its latest accounts, for the year to June 2003, revealed an operating profit of just $671,000, down from $1.18 million in the previous financial year.
Adding to its financial woes, Palandri has revealed a $4.5 million shortfall in one of its managed investment schemes, the Margaret River Wine Business Stage II.
The shortfall is the difference between the proceeds from wine sales and Palandri’s management fees.
The company said it was still deciding whether to make a call on members of the scheme, or to borrow the extra money using its wine stock as security.
Last September the company made a $4,300 call on each member of the Margaret River Wine Business Stage I to make up for a shortfall on that scheme.
The planned AIM listing contrasts with Palandri’s earlier intention, announced last December, to list on the Australian Stock Exchange in 2005.
Meanwhile, fellow Margaret River winemaker Amberley Estate has been bought by Canadian company Vincor International.
Vincor paid $24.8 million for Amberley and plans to integrate it with Mt Barker’s Goundrey Wines, which it purchased in 2002.
Palandri had sought to purchase Amberley in 2001, for a price of $25 million but forfeited a $500,000 deposit when it was unable to raise the funds.