Business
Diamond Estates Wines & Spirits Inc. Announces the Closing of its Acquisition of Perigon Beverage Group
Niagara-on-the-Lake, Ontario--(Newsfile Corp. - October 9, 2024) - Diamond Estates Wines & Sp...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"Diamond Estates Wines & Spirits Inc. Announces the Closing of its Acquisition of Perigon Beverage GroupNiagara-on-the-Lake, Ontario--(Newsfile Corp. - October 9, 2024) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) (\"Diamond\" or the \"Company\") is pleased to announce that it has closed its previously announced acquisition of certain assets from the Perigon Beverage Group (\"Perigon\"). More specifically, Diamond has purchased the agency and supplier contracts, the intellectual property, and other intangible assets of Perigon and its agency business, such as its website, customer lists, business names and inventory. The purchase price is $1.799 million based on Perigon's latest financial results. The purchase price will be satisfied by the issuance of common shares of Diamond in four tranches as follows: five million common shares of Diamond have been issued to Perigon today at a deemed issuance price of $0.26 per share, and thereafter an additional amount of shares having a value of approximately $499,000 issuable in three (3) equal installments (each representing one third (33.3%) of the balance owing) payable every six (6) months over the eighteen (18) month period following closing, subject to certain adjustments based upon the achievement of gross margin targets. Shares issuable in the tranches after closing will have issuance prices equal to the greater of (i) the average trading price over the thirty (30) days prior to their respective issuance dates, and (ii) the minimum price permissible under the rules of the TSX Venture Exchange (the \"TSXV\"), being $0.21 per share.The common shares issued today are subject to a statutory hold period of four months and a day from their date of issuance, in accordance with applicable securities legislation. About Diamond Estates Wines and Spirits Inc.Diamond Estates Wines and Spirits Inc. is a producer of high-quality wines and ciders as well as a sales agent for over 120 beverage alcohol brands across Canada. The Company operates four production facilities, three in Ontario and one in British Columbia, that produce predominantly VQA wines under such well-known brand names as 20 Bees, Creekside, D'Ont Poke the Bear, EastDell, Lakeview Cellars, Mindful, Shiny Apple Cider, Fresh Wines, Red Tractor, Seasons, Serenity and Backyard Vineyards.Through its commercial division, Traje...