Gage Roads raises $8m to extend packaging line
Gage Roads Brewing Co (GRB) has revealed it has successfully completed a capital raising initiative to raise $8m from institutions and sophisticated investors through over 84 million shares at an issue price of $0.095.
The brewer said that the capital raised will go to a number of packaging line expansions and improvements. Those improvements include installing a new commercial-scale canning line as well as a high-speed bottle filler and other plant improvements.
In a statement about the capital raising, GRB said that the improvements will “drive increased plant efficiencies that will result in lower operating costs and improved earnings”.
Managing Director John Hoedemaker added: “The strong support from the investment community is both indicative of the success of the proprietary brand strategy as well as a vote of confidence for the company’s capital expansion program this is designed to deliver incremental earnings to all shareholders.”
GRB currently has a small-scale pilot canning in place and has so far released its Single Fin Summer Ale, Alby Draught and Alby Crisp in cans. The brewer said that the new canning line will mean a significant increase in the amount of cans it produces and that more beers will be available to retailers and consumers.
“The company is further looking to launch a number of exciting new brands in can format for this upcoming summer season,” GRB said. “Over time the company expects beer in can format to form up to 25 per cent pf the company’s proprietary brand sales.”
The company also said that with the new canning line and bottle filler in place as well as the other plant improvements it expects to increase cost efficiencies, reduce waste and is targeting additional earnings of $1.5m to $2.5m by the 2022 financial year.