After scoring $2 million in last month’s crowd funding deal, ParrotDog announced today that it is teaming with Moa in a sales and distribution deal.
The arrangement sees Moa taking over New Zealand sales and distribution for ParrotDog from 1 October, allowing PDog to concentrate on the expansion programme on a large new site near Wellington airport.
ParrotDog’s Matt Kristofski says, “Sales and distribution is a very important part of any craft brewery’s growth. We have admired what Moa has done in building their own sales and distribution team, and would be thrilled to be part of it. Having them handle distribution of our product in New Zealand allows us to focus on getting on with building our new facility and brewing more beer. They get what we are about and Moa will be a good partner for us.”
Moa chief executive Geoff Ross says, “Customers are telling us they don’t want to see a truckload of different people with different brands. They want one visit from someone that knows craft beer. We’ve seen ParrotDog grow in leaps and bounds of late. It is a great brand, we’re thrilled to be part of. We believe ParrotDog will be complementary to the Moa brand and will provide our sales team with a stronger craft beer offering, contributing positively to our revenues and gross margins."
Moa also announced two new institutional investors: "PIE Funds Management will become a cornerstone shareholder by acquiring a 6.6% interest in Moa. The total placements represent a stake of 7.3% in the enlarged share capital of Moa and the pricing represents a discount of 6.4% to the Volume Weighted Average Price (VWAP) of Moa over the last 60 trading days. This placement will settle on 12 September 2016.
"In order to provide existing Moa shareholders with the opportunity to invest at the same price as the institutional investors, Moa intends to launch a non-renounceable rights issue to raise $1.26 million. The rights issue will allow shareholders to take up one new share for every 30 held on the record date, which will be announced shortly. Including the placement, Moa is therefore raising a total of $4 million in new equity.
"The capital will be used to further expand the sales team, both in New Zealand and offshore and will provide additional funding for working capital and expenses both for the core Moa business and for the Company’s new distribution initiatives, commencing with ParrotDog."