Significant Opportunity - Whiskey, page-29

from memory here...

• LRK own the brand "Nant" so it (and its whiskey) really all come from the same stock... just different quality / limited release
• The dodgy whiskey was from a failed barrel investment scheme run by the former owners of Nant
• Whiskey stocks in the scheme were either
• A1 quality
• Diluted / sub par quality
• Empty barrel
• Investors in the barrels had the chance to redeem their barrel if they wanted... or sell via auction process... those with empty barrels lucked out.
• The only stock MCL have is from this scheme... but has been audited and confirmed in quality, Stuart Moreton is very confident on this front.... I would have no doubt the litres that LRK bought from the scheme would be of the same quality as the stuff MCL has (our stock was bought by former CEO of LRK - so I would say his came out of the total bought by LRK) ... and yes, it is an insignificant amount of their total maturation stock.

Drawing any form of line between LRK & MCL right now is a leap waaaaay too far. Its the number of litres in barrels aging... and the confirmed quality of it which has given LRK a good run... while we are gearing up for production... as the first batch (Nant stock) is supposed to be being sold this year... then we have no aged stock... and you really want that stuff aged in barrels for 6-7years minimum and 12+ years optimal. The only way MCL get aged stock to sell for the next 5-6 years is if we are buying contract distilled stock at a premium price (or lower quality).

Agree @Balthazar1 that MCL seem to be jumping around ATM... 6 months ago the plan was to have 12 beer labels, now we are pursuing higher margin spirits and bolting on AHD to more rapidly chase positive cashflow and IMO it comes down to executive director bonuses.

From the IPO - I viewed MCL as a craft brewer / distiller accelerant - Buffet style - with substantial or controlling holdings with the crafter still being a majority holder and being the "engine" of the brand, MCL to provide expertise & scale benefits to assist growth... this AHD deal is a complete step away from that... and also carries some substantial KMP risk working forward.

That being said... I have put my cash in for full allocation and full bonus issue.