Winc slashes IPO 73% after postponement, bails on "white shoe" underwriters.

Wine club Winc  -- which postponed its October IPO -- announced Tuesday it was planning to offer 1,538,462 shares of common stock at $12 and $14 per share, down from from 5 million shares at $14 and $16 per share.

That means its total gross raise would be approximately $20 million at the midpoint of the revised offering range as opposed to $75 million for the original offering. The offering is being moved from the NYSE to the small-cap NYSE American exchange.

Further, Winc has shed its white shoe underwriters  -- BofA, Canaccord, Craig-Hallum, Roth and Benchmark -- and is now being underwritten by Spartan Securities and Revere Securities.

"That's very expensive money," a top-ranking, financial executive told Wine Industry Insight. "After all the bills are paid, I think they will come out with $12 or $13 million.

"They must need the money really badly to spend $7 or $8 million to get $12 or $13 million.

Customer Churn Is Big Money Burn

As Wine Industry Insight  pointed out on October 21, and in previous articles (below) Winc suffers most severely from its unsustainable customer churn, losing 70 percent of its club members on an annual basis.

NOTE: Many of the articles below contain links available to premium members only. Please consider subscribinh to help continue original journalism.

• Winc’s not-so-Netflixy customer retention rate — here’s how the math works
• Winc falls way short of being “The Netflix of Wine” when it comes to customer retention
• Ohio State Attorney General Has Commanding Lead In Direct Shipping Litigation Tournament 4-2-1
• Winc raises $3+ million in latest offering, but fails to disclose federal court case brought against it by state of Ohio
• Winc the Netflix of wine? (Nope)

Most Current SE Filings

• FORM S-1, Nov 2
• Issuer Free Writing Prospectus dated November 2, 2021

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