Mighty Craft has renegotiated the terms of its deal with South Australian brewery Sparkke and is upping its stake in the business.
In 2019, the craft accelerator entered two convertible notes for Sparkke, a short-term debt facility which enables an investor to loan money to a company and receive equity in the company in return.
The notes were valued at $2 million, and upon conversion, this would result in a 42 per cent stake in Sparkke.
Mighty Craft (formerly Founders First) has today told the ASX that it has renegotiated the terms of these notes, including their conversion price. Upon conversion, they will give the accelerator an equity stake of 61 per cent.
It is not the first time Mighty Craft has taken larger stakes in its portfolio businesses, having upped its stake in Jetty Road Brewery. as well as taking a majority stake in Brisbane’s Slipstream Brewing Co. last year.
It also announced that Sparkke will conduct another capital raise later in the year to fund its development of the Vine Hotel in Collingwood, Victoria, its second venue after Sparkke at the Whitemore in Adelaide.
“Sparkke is a unique business that has a range of incredible drinks and operates an award-winning pub out of Adelaide,” said Mighty Craft managing director Mark Haysman.
“We are proud to be strengthening our partnership.
“We think the brand has enormous potential both in Australia and overseas given its unique positioning, passion for championing women in business and high-quality drinks.
“The recent launch of the ‘Full Circle’ spirits brand is an insight into the talent and creativity of the team at Sparkke.”
In other Mighty Craft news, portfolio company Slipstream Brewing is set to open its revamped Brisbane brewpub this Friday, 19th February following a $1.5 million investment from Mighty Craft.
“Deale and Elisa are making some of the most sessionable and accessible craft beers in Australia, and this brand new venue provides the perfect showcase for their full range. It gives people the chance to get up close and personal with them and to see first-hand how everything is made,” Mighty Craft’s Mark Haysman said.
Located at 94 Wilkie Street, Yeerongpilly, Slipstream Brewing’s brewpub will open from Wednesday to Sunday, 11am–10pm