Invivo Wines has hit the $2 million mark for its equity crowdfunding campaign, the first company to reach this maximum amount allowed.
The offer opened to the public 12 days ago on Snowball Effect, although pre-registered investors raised $772,829 in the two days before that.
Drone company Aeronavics, which crowdfunded on Snowball Effect in February, held the previous highest amount at $1.5 million.
Under the Financial Markets Conduct Act 2013, companies are limited to raising no more than $2 million from the public in any 12-month period.
Invivo co-founder Tim Lightbourne told NBR ONLINE it is “exciting times” ahead, with management looking forward to working with their 430 new shareholders.
“The team at Invivo is ecstatic to hit the $2 million mark. A lot of work has gone into preparing the offer and spreading the word around the country and we’re glad it’s paid off.
“Since 2008 we’ve steadily built up an exciting and innovative brand and it’s great to see the public believe in us and what we are doing.”
Invivo, which has had 207% sales growth since 2011, is raising money for working capital, expansion plans, staff hire, and increasing brand presence.
The company plans to grow in the next five years by securing more distribution outlets in its lead markets, increase presence at creative industries events, and complete its spritzer rollout.
It has also appointed Miro Capital as advisers to look at launching on the new growth market NXT, which would provide a liquidity event for its new investors.
The company brought in revenue of $3.4 million in 2014 and is forecasting $5.1 million for 2015 (year end 31 March) and $11.3 million in 2017.
The company is valued at $10 million. Management says the company will generate cashflows and profits to justify such a valuation, based on the listed market multiples for wine companies and fast-growing craft brewers, as well as other recent transactions in the beverage industry.
The wine has taken the fancy of UK talk show host Graham Norton, who promotes it on his show and is its fifth largest shareholder with a 1% holding, according to Companies Office records. This will remain the same post-capital raising.
Other high-profile investors include Neville and Elisabeth Findlay of fashion label Zambesi, who have a 2.97% stake, dropping to 2.37% after the capital raise.
Mr Lightbourne and co-founder Rob Cameron each have 35.59% ownership, which will decrease to 28.4% after the capital raise.
Companies listed with equity crowdfunding platforms – legal in New Zealand since last July – do not have to provide a product disclosure statement but the crowdfunder is required to provide information about its service and the risks of investing through the service to investors.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- RNZ's Colin Peacock grills NBR publisher Todd Scott about his rising social media profile and a push or 100,000 subs
- Cameron Officer on the brands tailgating Tesla's electric vehicles
- Tim Hunter discusses why Christchurch-based cryptocurrency exchange Cryptopia could face a class action
- Intelligence expert Paul Buchanan discusses Pacific Aerospace
- NBR Radio: The best interviews – updated daily, with Grant Walker