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Burgundy's Domaine Chanzy 'postpones' Seedrs crowdfunding campaign

Published:  01 April, 2015

Burgundy winery Domaine Chanzy has postponed its Seedrs crowdfunding campaign, which was aiming to

Burgundy winery Chateau Domaine has postponed its Seedrs crowdfunding campaign.

The Domaine Chanzy was set to be the first wine company to use a crowdfunding platform to launch its initial public offering (IPO) on the AIM exchange, which forms part of the London Stock Exchange. It was seen as a trail-blazer which could open the door for non-institutional investors to have access to purchasing shares.

However, in a letter sent to its Seedrs investors, Domaine Chanzy's chief executive officer Phillippe der Megrenditchian confirmed that it was suspending the current campaign because the company was in "advanced discussions" to acquire another significant French wine producer. 

"The acquisition, which is expected to be equity financed, would serve to broaden Domaine Chanzy's range of wines and distribution capabilities, increase its operating leverage and reduce its financial gearing, " he said. "In light of this significant change to its business, the Company is therefore obliged to postpone its proposed introduction to trading on AIM."

He added that it was looking increasing unlikely it would reach the £1.9m target within the deadline set on the Seedrs website, despite the support it had received from the Seedrs investor community and elsewhere. 

He said investors would be provided with further information on the development "as soon as appropriate".

As spokesman for Domaine Chanzy told the prospect of the acqusition "significantly changed" the prospect of what the business entailed and they were obliged to halt the crowdfunding process as a result. Although no timeframe had been set on resuming it, he said the company was keen to come back with a new proposition "if and when the proposed acquisition" goes through.

Chanzy's CEO, Philippe der Megreditchian said: "We were pleased with the encouraging level of support that we received from individual investors that were introduced via our partners at Seedrs, who were coordinating the crowdfunding element of our IPO. We plan to capitalise on this interest by presenting a larger, more diverse business, once we complete this proposed acquisition."

When the Seedrs campaign was launched, Der Megreditchian, said the unique approach to listing on AIM via crowdfunding would enable Domaine Chanzy to reach a wide investor base and deliver on its ambitions to be one of the top wine producers in Burgundy. It would have been the only French wine specialist listed in London as well as the only French company listed on AIM.

Domaine Chanzy owns the Chanzy Group, owns 30 hectares of vineyard across Burgundy,including in Côte de Nuits, the Côte de Beaune and the Côte Chalonnaise. It also owns Maison Chanzy, a wine negociant company.