Influencer-backed brewery goes offline
Mighty Craft, a publicly-listed Australian brewery that looked set to merge with a beer created by the Inspired Unemployed, has fallen into administration.
Mighty Craft invested in various spirits, beer, and cider brands, including 78 Degrees, Kangaroo Island Spirits, Seven Seasons, Nosh Boozy Seltzer, Mismatch Brewing Co, Jetty Road, Slipstream, Foghorn, and the Hills Cider Company. The company owned 33% of Better Beer, a company launched by Jack Steele and Matt Ford from The Inspired Unemployed.
The two businesses looked set to merge, but these talks have seemingly collapsed, according to an ASX update by Mighty Craft, announcing the brewery had gone into administration, with insolvency firm Ankura appointed.
“The company has been undergoing a divestment and restructuring program to reduce the company’s debt,” the ASX statement reads.
“Fundamental to this program was a proposed merger between Better Beer Holdings Pty Ltd and MCL, an arrangement that required the support of MCL’s senior lenders and the shareholders of Better Beer.
“A capital raise to support this process was also contemplated.
“It now appears unlikely that an agreement will be reached between MCL’s senior lenders, Better Beer and Mighty Craft that is acceptable to all parties.”
Mighty Craft floated on the stock market five years ago, reaching a high of 42c/share a year later. The company last traded at just 0.5c/share – meaning its ASX value has dropped from north of $150 million to $1.8 million within just four years.
“The administrators have confirmed that the operations of the company and its subsidiaries will continue on a business-as-usual basis,’’ Ankura said.
“The administrators will provide updates of any material events throughout the administration by way of announcements to the ASX.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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Ankura
Better Beer
Mighty Craft
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