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Diamond Estates Wines & Spirits Announces Acquisition of Backyard Vineyards
Diamond Estates Wines & Spirits Announces Acquisition of Backyard Vineyards Di...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"\n\n\n\nDiamond Estates Wines & Spirits Announces Acquisition of Backyard Vineyards\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nDiamond Estates Wines & Spirits Announces Acquisition of Backyard Vineyards\nCanada NewsWire\nNIAGARA-ON-THE-LAKE, ON, June 28, 2018\n\n\n\nStrategic Addition of B.C. Winery Transforms Company into a National VQA Wine Producer\n\n\n\nNIAGARA-ON-THE-LAKE, ON, June 28, 2018 /CNW/ - Diamond Estates Wines & Spirits Inc. (\"Diamond Estates\" or \"the Company\") (DWS-TSX Venture) is pleased to announce that it has today acquired Backyard Vineyards Inc. (\"Backyard\") of Langley, British Columbia. This highly strategic transaction transforms Diamond Estates into a national producer of VQA wines and positions the Company to build a major new winery in the internationally-recognized Okanagan Valley wine-producing region. The total purchase price is $3.0 million, consisting of $0.75 million of cash, $1.5 million of Diamond Estates stock valued at $0.32 per share, and the assumption of $0.75 million of debt. The vendor is Ewen Stewart.\n\nBackyard owns a 10,000 square-foot winery, retail store and warehouse in Langley, which has operated for 15 years and won numerous awards. Backyard generated revenue of approximately $2.0 million in the twelve months ended May 31, 2018. Current capacity of the Langley facility is 25,000 cases annually. The facility is approximately 50% utilized at present, giving Diamond Estates the ability to launch its own brands in the market without a material infrastructure expansion. Diamond Estates has an existing business relationship with Backyard.\n\nIn addition, Mr. Stewart and his development company Azura Management Corp. have obtained the rights to 180 acres of land on the Naramata Bench, located in the southern portion of the Okanagan Valley near Penticton. Azura Management and Diamond Estates plan to co-develop a new Lakeview Cellars winery on a portion of the site. The estimated initial capital expenditure for this winery would be approximately $7 million.\n\nThe Backy...