LARK DISTILLING CO. LTD — Capital/Financing Update 2018

Mar 7, 2018

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ASX Release Date: 8 March 2018

Australian Whisky Holdings Limited Private Placement heavily oversubscribed

Australian Whisky Holdings Limited (ASX: AWY) ( the Company ) is pleased to advise that it has received firm commitments to raise $7.85 million (before expenses of the offer) from sophisticated and professional investors ( Placement ). The funds will be raised by a placement of 262 million fully paid ordinary shares in two tranches. The shares will be issued at $0.03 per share (three cents per share) representing a discount of 14.3% to the last closing price as at 5 March 2018 of $0.035. This also represents a discount of approximately 7.3% percent to the 10 day VWAP of $0.032.

The placement will occur in two tranches as set out below:

	Number of Shares	Funds Raised
Tranche 1	106,573,568	$3,197,207.04
Tranche 2	155,304,133	$4,659,123.99
Total	261,877,701	$7,856,331.03

Tranche 1 of the Placement is unconditional and will be issued pursuant to the Company’s 15% placement capacity and additional 10% placement capacity under ASX Listing Rule 7.1A as approved at the Company’s Annual General Meeting on 28 November 2017. Settlement of Tranche 1 will occur on Tuesday, 13 March 2018.

Tranche 2 is subject to the obtaining of shareholder approval. The Company intends to issue a notice of general meeting to seek shareholder approval as soon as possible. Settlement of Tranche 2 will occur on or around Friday, 20 April 2018.

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“We believe the heavy oversubscription for this placement is indicative of the strong market confidence in AWY’s business. We are delighted to receive this significant investment from strategic investors keen to assist the company with future distribution initiatives into new markets, grateful to the ongoing support from our existing shareholders and welcome the inclusion of new sophisticated and professional investors onto the register” commented AWY chairman Terry Cuthbertson. “Our brands have again won recent international awards and are gaining credibility in a growing global market for single malt whisky. Our focus is now on increasing production and putting in place the infrastructure to support future distribution agreements.

The funds raised will be utilised for:

• continuation of whisky buy-back programme;

• capital expenditure for stage 1 expansion of Nant Estate to increase production to approximately 700 barrels per year;

• planning for a second stage expansion of the Nant Estate involving the construction of an additional distillery on-site to increase production to approximately 1,500 barrels per year; and

• investment in sales, marketing, distribution, additional staff and transaction costs.

The Lead Manager and Bookrunner to the placement is Bell Potter Securities Limited. The Company was advised by its solicitors GrilloHiggins Lawyers and corporate adviser Odyssey Capital Pty Ltd.

For further information, please contact Gary Stewart, Company Secretary.

Yours sincerely,

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Company Secretary Gary Stewart

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