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Moa after $4m in placement, rights issue

NZ Newswire logoNZ Newswire 7/09/2016 Jonathan Underhill

Moa Group is to raise $4 million via a placement and rights offer at a 14 per cent discount to the stock's last traded price, and will use the funds to expand its sales team and for working capital and expenses.

The listed boutique brewer will issue 3.77 million new shares at 73 cents apiece to two New Zealand funds raising $2.75m. Pie Funds Management will end up with 6.4 per cent of Moa and another fund, which isn't being made public, will take up the balance of the placement, which amounts to 7.3 per cent of the company's enlarged capital. Moa shares last traded at 85 cents, having listed at $1.25 in late 2012.

Moa will also raise $1.26m through a one-for-30 non-renounceable rights issue on the same terms, with institutional investors, Business Bakery and its associates and Allan Scott Wines and Estates committing to take up their pro rata entitlement and to underwrite the issue, the Auckland-based company said in a statement.

Moa said funds raised will help drive the company's new distribution initiatives, starting with Wellington-based ParrotDog Brewing.

The two companies today signed a heads of agreement that will see Moa distribute the craft brewer's products alongside its own starting on Oct. 1.

"We believe ParrotDog will be complementary to the Moa brand and will provide our sales team with a stronger craft beer offering, contributing positively to our revenues and gross margins," it said.

Last month ParrotDog raised $2m in less than two days in an equity crowdfunding campaign on PledgeMe and will use the funds to set up a new brewery in Lyall Bay in the next few months, tripling production.

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