Lark Distilling Co. Ltd. · ASX:LRK
Lark Distilling — Investor Presentation (July 2024)
20 slides from Lark Distilling's investor presentation, Jul 29, 2024
Slide 1: Equity Raising Presentation
For personal use only LARK DISTILLING CO. LTD EQUITY RAISING PRESENTATION JULY 2024
Slide 2: Transaction Overview
TRANSACTION OVERVIEW Build Long Term Brand Value – Lark will build a globally recognised and differentiated luxury brand Strategic For personal use only 1 Priorities International Sales Momentum & Domestic Leadership Position - Creation of repeatable diversified revenue streams Cash & Capital
Slide 3: Progress Being Made in Executing Strategy
PROGRESS BEING MADE IN EXECUTING STRATEGY . BUILD LONG TERM BRAND VALUE For personal use only • Continued awards recognition & Peter Gilmore partnership . • ‘Rare & Remarkable’ products introduced to drive halo and brand equity • Commenced work on portfolio restage, including appointment of creative
Slide 4: Announcement of Strategic Partnership
ANNOUNCEMENT OF STRATEGIC PARTNERSHIP For personal use only • Formal long-term barrel supply agreement with Seppeltsfield Wines Pty Limited, an entity associated with Lark Director, Warren Randall • Partnership will secure access to premium oak barrels for Lark, Summary formalising first right of us
Slide 5: Announcement of Strategic Partnership (cont'd)
ANNOUNCEMENT OF STRATEGIC PARTNERSHIP (cont’d) For personal use only • 10-year agreement with a 10-year option for extension by Lark • Includes rare fortified Tawny, Muscat, Tokay, PX and Olorosso barrels that will be central to Lark’s premium portfolio offering and ongoing expansion strategy, both
Slide 6: FY24 Key Highlights
H1 FY24 Results - LARK Distilling Co. FY24 | Key Highlights1 Net sales of $14.0 Operating EBITDA of Whisky bank of 2.5 For personal use only million2 in line with prior $(2.8m) million million litres* market update3 underwriting future (down $3.1m on FY23) sales growth Gross margin of 68% Impact of
Slide 7: Use of Proceeds
USE OF PROCEEDS SOURCES AND USES Proceeds from the Placement will provide Lark with balance sheet flexibility to invest in the brand and facilities to drive the export strategy and accelerate growth, with distilling production scaled For personal use only USES OF FUNDS $M up to support this. Capital
Slide 8: Equity Raising Details
EQUITY RAISING DETAILS For personal use only A placement to raise approximately $21.5m (the Placement), comprising: • Approximately $6.5m non-underwritten institutional placement to eligible shareholders of approximately 7.6m New Shares to be undertaken without Placement Structure and shareholder ap
Slide 9: Equity Raising Timetable
EQUITY RAISING TIMETABLE For personal use only KEY DATES Record date for SPP Friday, 26 July 2024 Trading halt and announcement of the Placement Monday, 29 July 2024 Placement bookbuild Monday, 29 July 2024 Announcement of the outcome of the Institutional Placement Tuesday, 30 July 2024 Trading halt
Slide 10: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation is dated 29 July 2024 and has been prepared by Lark Distilling Co. Limited (Lark) in connection with the institutional placement of new fully paid ordinary shares (New Shares) in Lark to certain professional and For personal use only sophisticated in
Slide 11: Important Notice and Disclaimer (cont.)
IMPORTANT NOTICE AND DISCLAIMER (CONT.) Lead Manager Disclaimer For personal use only To the maximum extent permitted by law, the Lead Manager, its related bodies corporate and affiliates, and their officers, directors, employees, agents and advisers: disclaim all responsibility and liability (inc
Slide 12: Important Notice and Disclaimer (cont.)
IMPORTANT NOTICE AND DISCLAIMER (CONT.) Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. A number of important factors could cause Lark's actual results to differ materially For personal use only from t
Slide 13: Appendix
13 For personal use only Appendix 13
Slide 14: Annexure 1: Key Risks
ANNEXURE 1: KEY RISKS This section sets out some of the key risks associated with any investment in Lark, which may affect the value of Lark shares. The risks set out below are not listed in order of importance and do not constitute an exhaustive list of all risks involved with an investment in Lark
Slide 15: Annexure 1: Key Risks (cont.)
ANNEXURE 1: KEY RISKS (CONT.) Operational risks (cont.) For personal use only Topic Summary Route To Market & New Market Appropriate Route to Market is required to ensure long term sales development and sustainability for Lark, both domestically and in current and future export markets. Limited port
Slide 16: Annexure 1: Key Risks (cont.)
ANNEXURE 1: KEY RISKS (CONT.) General risks For personal use only Topic Summary Ability to access funding Insufficient funding may restrict Lark’s ability to trade, including brand investment with entry to new markets, or volume of whisky production, restricting future sales growth. Lark is currentl
Slide 17: Annexure 2: Summary of Placement Agreement (cont.)
ANNEXURE 2: SUMMARY OF PLACEMENT AGREEMENT (CONT.) Lark has entered into a placement agreement with Barrenjoey Markets Pty Limited ACN 636 976 059 (Lead Manager) in respect of the Offer (Placement Agreement) pursuant to which the Lead Manager agrees to conduct a For personal use only bookbuild for t
Slide 18: Annexure 2: Summary of Placement Agreement (cont.)
ANNEXURE 2: SUMMARY OF PLACEMENT AGREEMENT (CONT.) In addition the Lead Manager may also terminate the Placement Agreement if an event below occurs and the Lead Manager has reasonable grounds to believe and does believe that the event could give rise to a liability of the Lead For personal use only
Slide 19: Annexure 3: International Offer Restrictions
ANNEXURE 3: INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new ordinary shares of Lark (New Shares) in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may For personal use only not b
Slide 20: For personal use only
For personal use only Approved for release by the Board of Directors. For more information contact: Lark Investor Relations Peter Kopanidis +61 412 171 673 investors@larkdistilling.com 20