Agave and whisky company Top Shelf International has suspended its shares from trade
Spirits maker Top Shelf International has suspended its shares from trade as it investigates funding options and asset sales to underpin its viability.
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Whisky and agave-spirit maker Top Shelf International has suspended its shares from trade as it discusses funding and asset sales to ensure the company remains viable.
The company’s shares last traded at 4c apiece, near 12-month lows and a fraction of the $2.21 the company listed at in December 2020.
Top Shelf, which sought to lead the charge of Australian-made agave, is now worth just $13m. The company told the ASX on Friday it would not be able to release audited financial statements by Monday, September 30, as required, due to ongoing discussions on the debt and asset sale fronts.
“The company continues to progress discussions with a number of parties regarding the provision of funding and potential transactions to address its short to medium-term operating needs and the repayment of outstanding creditors,’’ the company said in a statement.
“The company will continue to closely review its operating strategy while it is suspended from trading to ensure that efficiency and profitability is optimised and a robust and appropriate funding structure is in place.
“The suspension is requested in order to allow the company to review its operating strategy and finalise a funding pathway (as outlined above) while conserving cash.
“Continued trading of Top Shelf International securities is likely to be materially prejudicial to finalisation of that funding pathway.’’
Top Shelf’s preliminary final report for the 2024 financial year, released in late August, showed the company made a $21.1m loss, down from a $48.2m loss the previous year, on revenue of $26.6m, down 3.3 per cent. The company’s net liability position was in the black to the tune of slightly more than $10m, with net debt improving from $30m to $16.7m over the year.
At the end of June the company’s cash position was $7m, but it made a subsequent debt payment of $2.8m in July.
On September 19 the company’s shareholders voted to execute a sale and leaseback agreement with former non-executive director Stephen Grove, under which Mr Grove will buy the company’s Eden Lassie agave farm in Queensland for $5m, and the company will lease it back for $500,000 per year.
Mr Grove, who owns 15.7 per cent of Top Shelf, resigned as a director on August 19, while Philip Baldock resigned as a non-executive director on September 5. John Selak also resigned as a non-executive director on August 16, leaving the company with only two directors, Julian Davidson and former chair Adem Karafili.
Top Shelf raised money in June through a retail entitlement offer, but only raised $1.6m after just 7.2 per cent of the offer was taken up, and institutions tipped in $1.3m.
The company had been seeking to raise up to $13.9m.
Originally published as Agave and whisky company Top Shelf International has suspended its shares from trade
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