NIAGARA-ON-THE-LAKE, Ont. – Diamond Estates Wines & Spirits Inc. is looking to raise $5 million to fund an expansion that will increase its production capacity by 50 per cent.
Based in Niagara-on-the-Lake, Ont., the company says it’s in the process of selling about 22.7 million shares of Diamond Estates (TSXV:DWS) at 22 cents each, through private placements.
That would raise up to $5 million in gross proceeds, before agent commissions.
Diamond Estates says it’s looking to benefit from Ontario’s move to allow more wine sales from grocery stores and from growth in export sales.
The money raised will be used to add barrel storage, warehouse space and bottling capacity.
The company says the resulting economies of scale are expected to translate into higher margins on incremental sales volume.