SYDNEY, AUSTRALIA: Mighty Craft Limited (ASX:MCL) has entered into an agreement to sell the assets associated with each of Mismatch Brewing Company Pty Ltd and The Hills Distillery (78 Degrees) to a third party buyer led by a consortium of experienced publicans in the Australian hospitality industry.
As part of the transaction, the assets associated with Mismatch and 78 Degrees, including the brands and all intellectual property, trading names, contracting arrangements, inventory, plant and
equipment, and licences will be sold for cash consideration totalling not less than $7.2 million (plus GST, if applicable).
The sale is conditional upon the transfer of all liquor licences, and the parties using reasonable endeavours to recommend certain personnel associated with the
businesses accepting offers of employment made by the buyer.
The sale also includes the assignment of the leases for the Mismatch Brewhouse venue and the Mismatch and 78 Degrees
production facility in South Australia.
It is intended that approximately half of the proceeds of the sale will be paid to MCL’s senior lenders as partial repayment of its outstanding debt facilities and the other half will fund the ongoing operations of the business.
Whilst the timing of completion of the sale is uncertain, the parties are currently targeting a settlement on or prior to 31 May 2024.