With its shares currently trading at an all-time low, newly appointed Mighty Craft chair Chris Malcolm has announced a formal strategic review of the business.
Malcolm leads a renewed board at Mighty Craft comprising consumer and retail executive Katie McNamara, former Foster’s CEO Trevor O’Hoy and 2021 appointment, Sean Ebert.
“Chris has a diverse background across various industries including distilling, franchising and property management,” Mighty Craft said.
Advertisement
“He currently serves as chair of several companies including Whipper Snapper Distillery Pty Ltd and previously served as executive chair of Lark Whisky Pty Ltd (previously Australian Whisky Holdings where Chris was CEO).
“Chris was also founding investor and director of Top Shelf International.”
Malcolm and Mighty Craft together founded the Tasmanian whisky brand, Hidden Lake, as previously explored with Malcolm on the Drinks Adventures podcast.
However, Mighty Craft announced last quarter that it now owns 100 per cent of Hidden Lake as part of its “overall simplification strategy”.
Review to consider debt reduction, asset sales
Together with Malcolm’s appointment, Mighty Craft announced a formal strategic review that will include the following workstreams:
- The need to reduce the debt load on the company in the short and medium term.
- The need to assess possible further / larger divestments to return capital to the business and realise value for shareholders; and
- The need to assess the right structure for the business going forward, including its corporate overhead in light of current challenging market conditions.
“Along with the new board and management team I have spent a lot of time listening to key stakeholders and discussing the future structure for the Mighty Craft business,” Malcolm said.
“While there are many positives, it is clear that the company needs a plan to realise more value for shareholders.
“The outcomes of the strategic review will take a few weeks and we will keep the market appraised of developments.”
Market cap down to $41 million
With its shares now trading at 12c, Mighty Craft’s market cap has slid to $41.35 million; less than the $47 million it paid to acquire the Adelaide Hills Group in June 2021.
As previously reported by Drinks Adventures, this market cap appears to vastly undervalue Mighty Craft’s businesses, brands and inventory.
More:
Chris Malcolm, founder Hidden Lake Whisky: S13E12
Lark launches IPA whisky, but ‘core range is king’
Top Shelf explains ‘Melbourne Process’ of making whisky