Top Shelf International (ASX: $TSI) executes $5m sale of land assets

Top Shelf International Holdings Ltd (ASX: $TSI) has executed a binding term sheet for the $5.0 million sale and leaseback transaction of the farmland and structural improvement assets at the Company's agave farm located at Eden Lassie in Queensland's Whitsundays region. The sale does not include the agave farm's distillery plant & equipment assets or agave plants. The proceeds from the proposed sale, after transaction costs, will be used by the Company for working capital purposes, including for further reduction of debt.

Executive Commentary

The binding term sheet for the sale and leaseback transaction of the farmland and structural improvement assets at our agave farm represents a strategic decision to optimize our capital structure. This transaction allows us to unlock the value of our land assets while retaining full ownership and control of our agave agronomy activities and distillery operations. The proceeds from this sale will be utilized for working capital purposes, including debt reduction, aligning with our ongoing capital strategy. We look forward to seeking shareholder approval at the upcoming Extraordinary General Meeting and anticipate completing the transaction by late May 2024.

Summary

Top Shelf International Holdings Ltd (ASX: $TSI) has executed a binding term sheet for the $5.0 million sale and leaseback transaction of the farmland and structural improvement assets at the Company's agave farm. The sale, excluding the distillery plant & equipment assets and agave plants, will provide proceeds for working capital purposes, including debt reduction. The Company's decision to retain full ownership and control of the agave agronomy activities and distillery operations demonstrates its strategic focus. The transaction is subject to shareholder approval at an Extraordinary General Meeting, with the Company aiming to complete it by late May 2024. This move aligns with the Company's capital strategy and reflects its commitment to optimizing its capital structure for future growth and development.