Burgundy winery Domaine Chanzy, which was set to launch what Seedrs CEO Jeff Lynn called “the first crowdfunding campaign for a company’s IPO,” has postponed its campaign on the leading investment crowdfunding portal, according to a recent story on Harpers.co.uk.
As Crowdfund Insider reported in February, the winery was to float shares on the London Stock Exchange’s (LSE) Alternative Investment Market (AIM). Domaine Chanzy was set to make a hybrid securities offer.
However, Domaine Chanzy’s CEO Philippe der Megreditchian recently wrote Seedrs investors that it seemed more unlikely that the £1.9 million target was achievable by the deadline on the Seedrs website, although it had already received support. Megreditchian also stated that Domaine Chanzy was in “advanced discussions” to acquire another French wine producer of note. As soon as it was appropriate, he added, investors would be given further information.
The acquisition, which is expected to be equity financed, would serve to broaden Domaine Chanzy’s range of wines and distribution capabilities, increase its operating leverage and reduce its financial gearing,” Megreditchian said. “In light of this significant change to its business, the Company is therefore obliged to postpone its proposed introduction to trading on AIM.”
If Domaine Chanzy had launched on Seedrs, it would have been the only French wine specialist listed in London as well as the only French company listed on AIM.
The Chanzy Group, owned by Domaine Chanzy, produces red and white Burgundy wines from Pinot Noir, Chardonnay and Aligoté grapes grown in the Burgundy region in France, and comprises several companies.
Domaine Chanzy SA, the parent company, manages the Group and owns approximately 30 hectares of vineyards located in the Côte de Nuits, the Côte de Beaune and the Côte Chalonnaise in the Burgundy region.
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