Canadian SPAC punts on pot, pivots to premium US wine in last-minute hunt for quality (Then becomes US citizen!)

By Lewis Perdue
Publisher, Executive Editor, Wine Industry Insight

In December 2020, a $360 million cannabis-oriented Canadian (SPAC) sponsored by a combination of US and London-based executives had looked at (and rejected) more than 100 companies. As the game clock ran down toward the SPAC equivalent of a two-minute warning, the team realized it needed a smart new strategy to sign a quality acquisition agreement.

South of the border, Pat Roney, CEO/founder of a profitable and expanding Napa/Sonoma company with $220 million in annual revenues, was reluctantly considering a traditional IPO, but wanted more funds than would be available via that path to swiftly continue a successful 20-year record of acquisitions. Time was running out on grabbing the choicest buys among the half of American winery owners who were in a selling mood.

Then synchronicity happened. This is how.

California-based Vintage Wine Estates is now swiftly closing in on a $690 million (ESG) SPAC offering. This because -- like a savvy quarterback looking at the two-minute warning -- top management at British Columbia-based  Bespoke Capital Acquisition Corp. (BCAC) recognized the late-game opportunity to change strategy.

NOTE: The links, graphics, and redacted portions of this 2,319-word article are available only to Wine Executive News premium subscribers who may log-in here:

• CCBill premium subscribers, please click this link.
• Stripe premium subscribers, please click this link

A free,  full-version will be available after the merged Vintage Wine Estates company files its S-4 IPO filing.

Not a Wine Executive News subscriber?

Subscribe to Wine Executive News now, and get the rest of this original article along with everything else on the site every day, including original documents, spreadsheets,and source materials for just $29.99 per month or $209 per year

Also in this issue:

• The Players

• The Game-Over results

• Dual listings for stock and warrants on U.S. and Canadian exchanges

• The need for speed: Bespoke's swift round-about pivot from Canadian Cannabis to California Wine

• How did Bespoke end up in the United States? Good judgment and pot froth

• Acquisitions baked into VWE's DNA

• VWE CEO Roney is not shy about the place of acquisitions and the need for additional capital in his overall strategy.

• Aggressive search for capital & SPAC target

• Strategy change based on financial standards

• Diageo Veteran Paul Walsh + financial expertise a vital part of the transaction
• Finance expertise

• Roney determined not to follow the bad examples of previous public wine companies

---

Froth, supply, and too many companies gone to pot. A sampling of articles on Canadian cannabis stocks

• 1 Big Problem With Canadian Marijuana Stocks
• Too high? Hedge funds unimpressed by Canadian cannabis stocks' rally
• Marijuana investors may lose 90% of their money in Canada, so consider the really big prize elsewhere
• Too much weed: Canadian cannabis producers are sitting on a mountain of inventory, and it's making some industry watchers nervous
• Are Any Marijuana Stocks Good Buys Amid March Cooldown?

---

A quick look at the order of events can be found in the following series of links:

• Jul 17, 2019 -- Bespoke Capital Acquisition Corp. (BCAC) Files Preliminary Prospectus for U.S.$350,000,000 Initial Public Offering
• Aug 09, 2019 -- Bespoke Capital Acquisition Corp. Files Final Prospectus for U.S. $350,000,000 Initial Public Offering
• Aug 15, 2019 -- Bespoke Capital Acquisition Corp. Announces Completion of U.S. $350,000,000 Initial Public Offering
• Sep 13, 2019 -- Bespoke Capital Acquisition Corp. Announces Exercise and Closing of Over-Allotment Option
• Nov 13, 2020 -- Bespoke Capital Acquisition Corp. Reports Third Quarter 2020 Financial Results
• Dec 18, 2020 -- Bespoke Capital Acquisition Corp. Provides Updates Concerning Acquisition Focus
• February 8, 2021 -- Bespoke Capital Acquisition Corp. Announces Listing on Nasdaq under the symbol BSPE

New Subscriber Info
You can always contact me directly at: lewis.perdue@wineindustryinsight.com or by replying to this email.


When you sign up for premium, I always check to see if you are also getting the free News Fetch. If not, I sign you up so you will get the news quickly.
 

3 More places where you can find VIP premium content

 

Every article that contains premium content will usually be the top link in the daily News Fetch unless some monumental news bumps it to #2.
In addition, articles that contain premium content will also be in the "Features" category on the Wine Industry Insight web site.


Why 2 billing systems?


Because our billing company of the past nine years was bought by a company that does not accept American Express, we have had to change our subscription process, and the method of accessing premium content. (Here’s more about that.)