Good Drinks Australia (GDA) has requested to delist its shares from the Australian Securities Exchange (ASX) as its board believes the move will help the company grow from its current undervalued position.
The company explained that despite growing its sale to more than 15 million litres per year and the launch of a hospitality division contributing $29 million in annual sales, its continued market share and own brand growth does not reflect in its share price.
Good Drinks expects the delisting can help the company achieve a valuation more closely aligned with industry metrics, through a potential trade sale or asset sale.
“We believe that aggressively pursuing a strategy to grow GDA proprietary brand sales volumes and market share is a more effective way to create value for Good Drinks shareholders,” said John Hoedemaker, Good Drinks Australia MD.
“Prioritising this strategic investment in sales and marketing to grow volumes, rather than a focus on bottom-line earnings, is more suited to an unlisted company environment.”
The board will also pursue a strategy aimed to expand its market share and increase its proprietary brand sales volumes from 15 million litres to about 18 million litres to 20 million litres.
“With a long history of positive operating cashflows and a sustainable underlying business that no longer requires access to equity capital as a listed public company, we feel that the timing is right for Good Drinks to pursue the next phase of its growth in an unlisted public company structure,” said Hoedemaker.
