Mackmyra offers shares to fund whisky expansion

Swedish whisky producer Mackmyra is proposing a rights issue to raise funds to accelerate its distribution and distillation growth plans.

Mackmyra claims to have had the best quarter for 30-litre cask sales in its history following the establishment of the Lofsdalen Skiresort whisky warehouse on Hovärken mountain

The award-winning producer of Swedish whisky has plans to continue its “strong growth rate” in Germany, France and the UK, as well as establish a new line of bespoke expressions for B2B customers in its home market of Sweden.

In addition, Mackmyra has revealed it intends to increase distillation in the autumn to “meet the need of Mackmyra’s increasing demand of smoky products”.

To ensure cash flow is in place to meet its growth requirements, the group is offering up to SEK11 million (£860,000; US$1.28 million) worth of shares to its current shareholders.

The issue equates to a maximum of 1,018,849 new shares at 11 crowns per share.

The issue follows strong Q1 2015 sales from the distillery, which increased 65% to SEK13.7m, compared to the SEK8.3m seen in Q1 2014.

Its sales were boosted by a deal with a distributor which partners with leading music festival Swedish Rock. Mackmyra created 6,666 limited edition bottles for the festival, which the distillery claimed will be the first in a new line of exclusive private label offerings for B2B customers.

“We are raising the capital to accelerate our growth initiatives, which are clearly evident in our first quarter,” the group said in a statement.

“Our immediate plans involve reinforcing our strong growth rate in our top priority export countries Germany, France and the UK, as well as establishing our whisky in the B2B market in Sweden. Assuming a continued good sales and cash flow trend, we also aim to increase the distillation rate slightly in the autumn, mainly to meet the need of Mackmyra’s increasing demand of smoky products.”

Earlier this year the producer partnered with Lofsdalen Skiresort to build a whisky warehouse at the top of the 1,125-meter high Hovärken mountain.

Mackmyra claimed the stunt, which is due to be completed in December 2015, has directly resulted in “the best Q1 for customer 30-litre cask sales in Mackmyra’s history”.