Listed brewer Mighty Craft has entered into voluntary administration after its proposed merger with Better Beer was cancelled.
The company, which launched on the ASX nearly five years ago, has appointed Liam Healey and Quentin Olde of specialist restructuring firm Ankura as joint and several administrators.
In a statement, Mighty Craft said it has carried out a divestment and restructuring program to reduce debt and had been in talks with Better Beer, in which it owns a 33 per cent stake, about a potential merger. A capital raise was also contemplated to support this process.
However, it is “unlikely” that an agreement would be reached for any deal, the company added.
The board of directors expects the company to continue as a going concern, or if this is not possible, to wind up the business immediately.
The administrators have assumed control of Mighty Craft’s business and assets and will be undertaking an urgent assessment. In the meantime, the company and its subsidiaries will operate as usual.
Mighty Craft shares last traded at 0.5c valuing the company at $1.8 million, according to The Australian.
The company sold Mismatch Brewing Company and The Hills Distillery for $7.2 million in April and Lot100 for $1.5 million last week. It previously acquired these businesses for $47 million from the Adelaide Hills Group.
Mighty Craft’s CEO and MD Mark Haysman stepped down in July last year, with Jess Lyons named as his successor.
