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Chapel Down to ‘accelerate growth’ as it raises £18.53m via fundraising

Published:  13 December, 2017

Chapel Down has raised £18.53m through the issue of new shares, with the intention of raising a further £1.47m via an additional open offer for existing shareholders.

The English winery said the funds would be used to accelerate growth of the business, which has delivered consistent growth over the past six years, with a 25% compounded annual growth rate in sales, according to a trading update announced today as a result of the fundraising.

Growth plans included securing new vineyard land of c. 500 acres; investment in sales and marketing; acceleration of Chapel Down’s Curious beer and cider brand as well as its recently launched gin and vodka, said Chapel Down.

In addition, the funds would enable the business to take advantage of acquisitions and consolidation opportunities going forward, said CEO, Frazer Thompson, adding this was a “transformational moment” for Chapel Down.

“The fundraising enables us to significantly invest in the business for further growth and to meet the increasing demand for our products,” he said.

It marked the opening of a new chapter of growth for Chapel Down,” he added.

The intended open offer for existing shareholders is expected to launch 19 December and will be open to those who are shareholders as of close of business on 12 December, with further details to follow in a separate announcement “in due course”.

Despite the “challenges” of the English weather, Chapel Down expected turnover to be at or above £11.6m for the current financial year, in line with management and the board’s expectations.

Investors in the fundraising include IPGL, the family office of Michael Spencer, with a global institutional investor having taken part in the fundraising alongside the company’s board and management.

Following the fundraising, the directors’ holdings represent 32.4% of the Company.

The news follows recent expansion of the senior team with the hiring of Gareth Bath from Brewdog and Mark Harvey from LVMH to drive the beer and wines and spirits businesses, respectively.