Further to my last blog, if WOW sell all their holdings on market it will provide 2 benefits to holders.-
First there will be a bucket load of cheaper shares available for investors to pick up.
Secondly there is no need to buy back any stock because it will all be sold, and therefore there will be another $1.6 million sitting in the bank. This surplus could be used for debt reduction, sales promotion, plant upgrades or even a dividend.
WOW have been a savour of this company since they came on board, they injected money and demand for contract brewing as well as guarantee for the huge growth in the capacity of the plant.
And yes this would have come at a cost because WOW would have demanded a good deal for their assistance.
Another benefit I see with WOW off the register is that we should achieve product placement in the Coles network and other outlets that refused to stock our lines because of WOW involvement.
GRB Price at posting:
4.3¢ Sentiment: Buy Disclosure: Held
