Digital Wine Ventures (ASX: DW8), is an Australian company that aims to identify and invest in early-stage tech-driven projects which have the potential to disrupt and digitally transform the USD 423.59 billion global beverage market. Led by start-up and wine industry veteran Dean Taylor, the company provides its investments access to expertise, capital and shared services.
DW8’s cornerstone investment is WINEDEPOT, a cloud-based SaaS platform, which it acquired in May 2019.
In short, it’s an integrated trading, order management and logistics platform that provides wine producers, distributors, importers and retailers access to an end-to-end supply chain.
The primary benefit for platform users is substantially reduced administration delivery times, costs and breakages. Once the B2B marketplace is activated, it will also provide them the ability to increase and streamline trade sales by providing access to a broad range of sales channels.
According to WINEDEPOT’s website, it offers suppliers saving of up to 60% on their existing direct-to-consumer fulfilment costs.
The WINEDEPOT Supply Chain Vision (Source: DW8’s Report)
DW8 Receives Commitments for A Private Placement
On 25 October 2019, DW8 announced that it had received firm commitments to raise $1,000,000 through a private placement. This included participation from DW8’s directors of $175,000, subject to shareholder approval.
- Will issue 126,923,077 new fully paid ordinary shares at an issue price of $0.0065 per share with 31,730,769 free attaching options;
- The completion is expected on or around 1 November 2019;
- Company directors have committed to 26,923,077 new fully paid ordinary shares at an issue price of $0.0065 per share with 6,730,769 free attaching options to contribute $175,000, subject to shareholder approval at the upcoming AGM;
- 39,283,734 shares of the total have been agreed to be issued pursuant to the DW8’s 15% capacity under Listing Rule 7.1;
- Remaining 87,639,343 shares have been agreed to be issued pursuant to the DW8’s 10% capacity under Listing Rule 7.1A;
In addition to the private placement, DW8 is also undertaking a rights issue to raise approximately $680,000 (before costs) through the issue of shares and free-attaching options at an issue price of $0.0065 per new share. Presently, the Company is finalizing the terms of the Rights Issue and is expected to announce the terms and record date in the coming days.
Together the Placement and Rights Issue is expected to raise over $1,600,000 before costs which will be used to help grow the WINEDEPOT business, funding additional human resources, technology research & development, marketing & advertising and general working capital.
The free attaching options are being issued on the ratio of 1 option for every 4 fully paid shares subscribed for and will be exercisable at $0.015 per option on or before 31 December 2022. DW8 intends to seek an ASX quotation of the Options following the issue of the proposed upcoming Rights Issue, which would be subject to the Rights Issue prospectus being filed with ASIC and meeting the conditions set out in the Listing Rules.
Peak Asset Management’s Role
The Company notified that Peak Asset Management would be the Lead Manager/ Advisor for both the Placement and Rights Issue.
The key terms of the Peak Asset Mandate are:
- 6% of the capital raising fees for any funds raised by or introduced by Peak in the Placement to be payable in cash, and
- 1% of the management fee on the total funds raised in the Placement, Rights Issue and director participation to be payable in cash.
Share Price Information
The DW8 stock settled at $0.007 on 30 October 2019, with a market capitalisation of $6.26 million and ~893.82 million shares outstanding.
DW8 recently announced that WINEDEPOT had onboarded Australia’s biggest most successful family-owned wine business, Casella Family Brands, onto its platform. To find out more about this exciting validation of the platform and operating model, we encourage you to READ HERE.
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