NZWC Needs Equity Funding To Bail Itself Out Of Financial Straits

New Zealand vintner New Zealand Wine Company (NZWC) is devising a three-year restructuring plan as it continues to grapple with the pressures of a strong New Zealand dollar and wine oversupply. While our improving outlook for the New Zealand wine market should provide some relief to NZWC's profitability, the company's net losses have deepened recently due to the aforementioned pressures, compounding doubts about the ability of the company to continue as a going concern. As a result, NZWC is currently weighing options that include engaging in a merger with another wine company and seeking an injection of equity capital from investors. Given NZWC's financial straits, we believe these are viable options for the company as it looks to put itself on a sound financial footing and will continue to monitor the company's strategies closely in order to ascertain its future prospects.

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