Missouri micro makes public offering.
Owners of a small Missouri microbrewery have launched a public offering, hoping to net up to $700,000.Tony and Fran Caradonna, owners of the O'Fallon Brewery, are currently selling stakes in their brewery through the limited offering. Under the terms of the offering, the shares are only available for sale to Missourians.
According to the St. Louis Business Journal, the brewery,founded in 2000, had sales of $115,243 in 2002, and has filed a registration with the state of Missouri authorizing the sale of up to 35 percent of the business.
O'Fallon Brewery is a true microbrewery, selling 1,800 barrels of beer last year.
As of mid-June, the company had raised more than $75,000 and added 80 shareholders. Recently the company started placing brochures about the offering in its six-packs of its O'Fallon Gold and O'Fallon Wheat brews, which are sold off-premise.
O'Fallon Brewery has until July 1 to reach a minimum of $142,000 in new capital, but the company also can extend the offering, according to the offering document.
The company states that the money will help pay down debt, purchase additional equipment and increase and support sales, possibly through use of a local advertising campaign.
According to information in the offering document, O'Fallon Brewery has not generated an operating profit and through Sept. 30, 2002, had an accumulated deficit of $555,605.
The offering notes that if O'Fallon sells only the minimum number of shares, the book value per share will be 28 cents, resulting in an immediate dilution in value for shareholders, who are paying $5 a share.
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| Title Annotation: | Weekly Specialty Beer Report |
|---|---|
| Publication: | Modern Brewery Age |
| Article Type: | Brief Article |
| Geographic Code: | 1USA |
| Date: | Jul 21, 2003 |
| Words: | 266 |
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