Trend im not sure on that. WW has committed initally to a 25% shareholding with an appointed director and an initial contract of no less then 350,000 cases per annum.
As part of it GRB was required to spend most the cap raisng on CAPEX and OPEX to ready for increased production.
" Gage Roads must use the subscription funds for the purposes set out in the Subscription Agreement, which include: (a) the purchase, installation and commissioning of capital equipment (up to $702,000); and (b) operating expenses, general working capital and other uses (up to $1,208,856)."
The detail in the announcment was " In addition to the placement, Gage Roads has entered into a supply agreement with Woolworths whereby Gage Roads will contract brew 350,000 cases of beer per year for Woolworths. The Supply Agreement is conditional upon Woolworths acquiring shares in Gage Roads under the Subscription Agreement.
Gage Roads Chief Executive Officer Nick Hayler said the Company was delighted to welcome Woolworths as a major shareholder and customer. We are very pleased to have attracted the interest and support of such a well recognised company in Woolworths, said Mr Hayler. This is a win-win situation for all parties. Mr Hayler said planning had commenced to maximise brewing capacity from the Companys West Australian brewery operations."
GRB Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
