Nick Cogger, CEO of Better Beer, assured The Shout that the recent announcement by Mighty Craft regarding its appointment of voluntary administrators will not impact Better Beer’s operations.
Mighty Craft revealed today that it is engaged in a divestment and restructuring initiative aimed at reducing its debt, with a key component being its planned merger with Better Beer. However, the companies were unable to finalize a mutually agreeable arrangement, leading Mighty Craft’s directors to conclude that voluntary administration was necessary to explore alternative options for the company’s continued operation.
In response to the development, Cogger emphasized, “This situation has no effect on Better Beer. Our operations will proceed as usual, and we will collaborate with the administrator to secure a new shareholder to replace Mighty Craft.” He noted that, as Mighty Craft holds a minority stake, Better Beer remains relatively shielded from the current situation. Although Better Beer sells beer to Mighty Craft, which in turn supplies it to customers, the administrator will manage the business as a going concern.
Better Beer, which achieved $100 million in revenue in April following just 30 months of operations, continues to perform strongly despite challenging market conditions. Cogger announced plans for an ambitious summer, including major activations and notable events.
Looking ahead, Cogger explained that the administration process would last approximately two months. During this period, the administrator will seek a company or individual to propose a Deed of Company Arrangement (DOCA). “We will remain patient throughout this process and are likely to welcome a new 25 percent shareholder in the near future,” Cogger concluded.
Related Topics:
