REG - Artisanal Spirits Co - Ferovinum Financing Facility

Artisanal SpiritsAnnouncement

17/11/2023 07:00

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RNS Number : 7578T  Artisanal Spirits Company PLC (The)  17 November 2023

17th November 2023

 

The Artisanal Spirits Company plc

 

("The Artisanal Spirits Company", "ASC" or "the Group")

 

 

Recognising and endorsing the value of Artisanal's whisky stocks, Ferovinum
provides drawdown optionality and further financial flexibility.

 

The Artisanal Spirits Company (AIM: ART), the owner of The Scotch Malt Whisky
Society ("SMWS"), the leading curator and provider of premium single cask
Scotch malt whisky and other spirits for sale primarily online to a discerning
global membership, is pleased to announce that it has, through a new partner,
Ferovinum, agreed a new financing facility of £15m, giving the Group further
financial flexibility and optionality to develop its business via recognition
of the significant appreciating cask spirit asset base.

 

As part of the initial agreement, Ferovinum have extended to ASC £2.6m in
cash, through a cask spirit parcel valuation of £3.8m at 70% loan to value
ratio, for a maximum period of 2 years with the same headline interest margin
as ASC's existing RBS banking facility.

 

The Ferovinum platform allows ASC to convert their maturing stock into a
just-in-time asset at a truer market valuation. Of the casks within the
initial transaction, the Net Book Value held on the Balance Sheet is £0.8m,
the current bank valuation is £1.3m and Ferovinum's valuation, using market,
external and internally generated intelligence is £3.8m, representing a 380%
and 191% incremental valuation on the net book value ("NBV") and bank value
respectively.

 

The facility allows the Group additional financial headroom and a larger
financial pool from which to draw, rather than an increase in the overall debt
level, as we balance this new facility and the existing RCF facility. The
Group's debt position therefore remains as previously guided.

 

 

Andrew Dane, CEO of The Artisanal Spirits Company, commented:

 

"This is an exciting development giving the Group further financial
flexibility without increasing gross debt whilst demonstrating the value of
the Group's assets. ASC has two value streams: the core trading business and
its inventory where the value of our spirit casks has been proven by Ferovinum
extending capital at retail valuations underpinning the worth of our
inventory, providing financial flexibility and giving us further confidence in
the Company's investment strategy and asset base.

 

 

                      £m   Uplift vs NBV  Uplift v Bank Valuation
 Net Book Value       0.8  -              -
 Bank Valuation       1.3  65%            -
 Cash Received        2.6  230%           100%
 Ferovinum Valuation  3.8  380%           191%

 

 

 

For further enquiries:

 

 The Artisanal Spirits Company plc         via Instinctif Partners

 Andrew Dane, Chief Executive Officer

 Billy McCarter, Chief Financial Officer

 Liberum Capital Limited (Nominated Adviser and Broker)  Tel: +44 (0) 20 3100 2222

 Edward Thomas

 Dru Danford

 Miquela Bezuidenhoudt

 Instinctif Partners (Financial PR)                      Tel: +44 (0)20 7457 2020

 Justine Warren

 Matthew Smallwood

 Joe Quinlan

 

 

About The Artisanal Spirits Company

 

The Artisanal Spirits Company (ASC) are curators of the world's favourite,
single-cask and limited-edition whisky.

 

Based in Edinburgh, ASC owns The Scotch Malt Whisky Society (SMWS) which was
established in 1983 and currently has a growing worldwide membership of over
38,000 paying members.

 

SMWS provides members with inspiring experiences, content and exclusive access
to a vast and unique range of outstanding single cask Scotch malt whiskies and
other craft spirits, with current stocks sourced from over 100 distilleries in
20 countries and expertly curated with diligence and care.

 

Since producing the Society's very first cask, we have created around 10,000
different whisky releases, producing a constant flow of unique and exciting
one-of-a-kind whiskies.

 

With proven e-commerce reach and new brands like J.G. Thomson, ASC is building
a portfolio of limited-edition and small-batch spirits brands for a global
movement of discerning consumers - delivering c.£22 million in annual
revenues with over 80% of revenue generated online and over 65% from outside
the UK, with a growing presence in the key global whisky markets including UK,
China, USA and Europe.

 

ASC has a pioneering business model, a substantial and growing addressable
market presenting a long-term global growth opportunity and a strong and
resilient business primed to deliver growth.

 

 

About Ferovinum

 

Ferovinum is a first-of-its-kind funding platform, backed by international
clearing banks and financial institutions, designed exclusively for the wine
and spirits industry. Its software integrates with the supply chain, logistics
and ecommerce infrastructure of the industry, providing users with fast,
flexible and cost-efficient access to funds at any point in the business
process - from production, through to distribution and retail fulfilment.

Ferovinum has created a ring-fenced platform that holds assets during
production, storage and distribution, allowing companies to convert their
maturing stock into a just-in-time asset. This flexibility allows businesses
to access capital when they need it, reducing their liquidity risk and
reliance on payment terms, as well as protecting profitability should supply
chain disruptions occur. Ferovinum clients can also take advantage of supply
chain and inventory management tools to access automation and reduce the
operational burden of getting their products into the hands of consumers.

Ferovinum was founded in 2018 by Mitchel Fowler, an experienced investment
banker and commodity supply chain expert; and Daniel Gibney, who has years of
experience in corporate finance, debt restructuring and hospitality.

 

 

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