Distil Share Discussion Threads

[stuart little] 21/7/2021 13:22

From my point of view, as long as dilution is back with a solid forward looking business plan the market will be ok with it. It's dilution purely for 'working capital' ie wages, that rubs investors up the wrong way. I got involved as I saw it as a rare opportunity as this company doesn't raise very often and probably (hopefully) won't need to again.

[cockneytrader] 21/7/2021 13:14

There will be approximately 25% more shares. On that we agree. However, the £3m raised will soon be earning 5%, £150k, which goes straight to bottom line. So eps will remain the same if not a little higher.

[petersinthemarket] 21/7/2021 12:59

Not sure if I have misunderstood you.

I agree, the terms of the deal for Distil Plc are ok/good.

But how will that interest payment make up for my dilution?

Shares previously up to 3.1p are now no better than 2.3p.

Just over 500m shares will become well over 6m shares.

That is dilution by any other name.

[cockneytrader] 21/7/2021 12:32

There seems to be alot of misunderstanding with regard to the terms of the deal.

Personally, I feel the terms are fair, especially the 5% interest charge on the £3m (or upto £5m) loan. This interest payment will more than make up for dilution.

[petersinthemarket] 21/7/2021 11:07

Roland Grain has spent a great deal of cash over several years and in several places to build his interest in spirits manufacture.

In an attempt to go global, he now has ownership, or a major stake,
in Distil Plc (England), Manly (Australia) Potstil (Austria), East London Liquor company (England) and Ardgowan (Scotland).

His main passion has always been for scotch and Potstil offers more than 1200 different scotches. But he is also offering Manly and Distil products for sale in his Austrian business.

A link between Distil and Ardgowan was perfectly obvious from the start. It is not quick or easy to put a single malt in our catalogue and this is a way forward in that respect.

We still do not know what he wants to do with ELLC (private Co).

Does he have a bigger plan than we have seen so far? We have little choice but to wait and see, but this guy is not messing about and he has the patience and the money to take his time and choose his objectives well.

As for my own feelings - a bit mixed - a very bright medium to long term future for Distil, but when I look at my own holding all I see is a major dilution and an share price which has dropped 30% from it's high. Should I be excited, or looking for an exit?

I will probably continue to hold, but it is going to take me some time to figure out all the possible angles after yesterdays announcement.

[tommyjnewton] 21/7/2021 10:33

The warrants are likely to keep the share price down for some time. Plus directors awarded themselves a lot of options some time back. Too much dilution IMHO. Plus once the dilution starts it tends to continue. End result is likely to be consolidation in a year or two. 100 old shares for a new one. Hopefully I'm wrong.

[kaos3] 21/7/2021 08:32

"Distil will undertake fitting out works in respect of the visitor experience area at its own cost."

and Roland is the major benefactor as the majority owner of the new entity

[kaos3] 21/7/2021 08:26

Roland went himself for direct equity in the new project. For DIS he chose convertible loan (did not find who holds the opion to convert and other details of conversion on the fast reding). in the process issuing shares in DIS at costs (fees) and warrants.

why is that so? TIA

[gipps] 20/7/2021 21:06

So do we as share holders get an option to buy in ?

[daz1712] 20/7/2021 18:45

It’s going to be a watered down Distil, as Pete pointed out when RG started building a stake, he could use the company to bring his other investments and investors into play with a up and running Public company

[cockneytrader] 20/7/2021 17:19

Having had time to go through all the details - this truly is a game changer. Blackwoods and Trove will indeed be distilled here, and a new whiskey will be added. The Ardgowan Estate has a great story to tell and the new distillery will be a further chapter. Very excited.

[kaos3] 20/7/2021 17:06

I wonder how many shares Rolands Ardgowan mates bought. They were in electronics & distribution .... like him

[petersinthemarket] 20/7/2021 16:59

Is anyone planning to attend the General Meeting?

[cockneytrader] 20/7/2021 16:19

Very interesting. Whiskey, however, requires a minimum of three years to mature by law. So will they be distilling Blackwoods gin there initially?

[tommyjnewton] 20/7/2021 15:20

Recent weakness in the price would suggest that there was some leaking of news regarding the proposed placing.

[meganxmas] 20/7/2021 14:41

Participated also. Medium to long term hold in interesting sector but with management obviously keen to progress. Hope will grow large company or at some point but not too soon be a tasty morsel for a big boy.

[stuart little] 20/7/2021 14:05

Sorry should read £650k

[stuart little] 20/7/2021 14:04

Yes very much so. TP used his involvement heavily in selling the placing. £600k invested by him. Keeps his holding around 20% post dilution.

[lr2] 20/7/2021 13:46

Welcome aboard Stuart. No doubt Roland Grain has had a hand in this.

[stuart little] 20/7/2021 13:23

I became a shareholder here today as part of this placing (or will on completion). An exciting new arm to the business and decent backing of the placing from 2 large shareholders, look forward to seeing how this plays out over the coming months. Have to say the warrants are generous though to placees!

[daz1712] 13/7/2021 21:46

10% Revenue increase for a fledgling AIM company sounds great!? an increase is obviously good but this should be a lot more with an ambitious team, sounds like steady as we go till retirement!

[bprofit] 13/7/2021 19:39

Redleg Banana Rum is currently ranked no.2 top seller in the Rum category on Amazon..

[guppy57] 13/7/2021 15:09

I too haven't seen any red leg rum for sometime. A slight concern but hopefully will change with time

[lr2] 13/7/2021 14:11

No sign of the tropical or banana varieties in my area. The pineapple version was a bit too sweet for my taste. Original is far superior.