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Diamond Estates Wines and Spirits Announces Brokered Private Placement and Planned Expansion of Wine Production Capacity
Diamond Estates Wines and Spirits Announces Brokered Private Placement and Planned Expansi...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"\n\n\n\nDiamond Estates Wines and Spirits Announces Brokered Private Placement and Planned Expansion of Wine Production Capacity\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 and Spirits Announces Brokered Private Placement and Planned Expansion of Wine Production Capacity\nCanada NewsWire\nNIAGARA-ON-THE-LAKE, ON, Dec. 2, 2016\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nNIAGARA-ON-THE-LAKE, ON, Dec. 2, 2016 /CNW/ - Diamond Estates Wines & Spirits Inc. (the \"Company\" or \"Diamond Estates\") (http://www.diamondestates.ca) (TSXV: DWS), is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. (\"Paradigm\") and GMP Securities L.P. (\"GMP\") pursuant to which Paradigm and GMP will act as co-lead agents (the \"Agents\") to sell, by way of private placement on a marketed best efforts basis, up to 22,727,300 common shares (the \"Common Shares\") of the Company at a purchase price of $0.22 per Common Share for aggregate gross proceeds of up to $5.0 million (the \"Offering\").  The Agents have also been granted an option (the \"Agent's Option\") to sell up to an additional 10% of the number of Common Shares issuable under the  Offering, exercisable in whole or in part any time up to 48 hours prior to closing of the Offering for additional gross proceeds of up to $0.5 million. \n\nThe Company intends to employ the proceeds of the Offering to expand its principal wine production facility to add cooperage (barrel storage), warehouse and bottling space.  When complete, Diamond Estates will increase its wine processing, ageing and bottling operations by approximately 50%, due to a mix of operational efficiency and increased capacity.  The resulting economies of scale are expected to produce significant operating leverage that is anticipated to translate into higher margins on incremental sales volume. \n\n\"Our planned capacity expansion will provide the Company with sufficient production...