NIAGARA-ON-THE-LAKE, ON, July 27, 2016 /CNW/ - Diamond Estates Wines & Spirits Inc. ("Diamond Estates" or "the Company") (DWS-TSX Venture) today announced new partnerships with financial service providers as well as the issuance of Deferred Share Units (DSU's).
CIBC appointed banker for Kirkwood Diamond Canada Partnership ("KDC")
The Company is pleased to announce that effective June 2, 2016 and reported as a subsequent event in the notes to the financial statements filed on July 22, 2016, CIBC assumed the commercial banking role and credit facility for the company's sales and marketing agency division, KDC, from Meridian Credit Union. The change provides access to CIBC's national branch network, global alliances, a robust and secure electronic banking platform, foreign currency hedging capabilities as well as other sophisticated financial tools. The credit facility has an umbrella limit of $4.5M, an increase of $1.5M from the Meridian facility, providing room for growth. The interest rate is Prime plus 1.25%, a decrease of 0.75% from the previous facility.
National Wine Awards of Canada 2016 ("NWAC")
The Company is pleased to announce that four of its wines were awarded medals at the prestigious National Wine Awards of Canada 2016, held at Penticton B.C. June 22nd to 26th, 2016. FRESH Perspectives Satin Red and EastDell Gamay Noir were both awarded silver medals while FRESH Opportunities Riesling Gewurztraminer and EastDell Summer Rose each received Bronze medals. The awards are a testament to our passionate winemakers and growers for the high quality VQA wine for which the Company has developed a strong reputation. For a complete listing of the medal winning wines from these and other competitions, please visit www.diamondestates.ca/site/winery-news.
Deferred Share Unit Issuance
The Company also wishes to announce the issuance of an aggregate of 305,749 deferred share units ("DSUs") to non-executive directors under the Company's deferred share unit plan (the "DSU Plan") in settlement of $41,063 of deferred directors' compensation. The DSUs are to be settled in common shares of the Company ("Common Shares") when the director retires from all positions with the Company.
"We are excited to have CIBC as a banking partner and are already leveraging our partnership with them through the use of Banker's Acceptances to reduce borrowing costs and are in the process of implementing a hedging strategy to reduce exposure to fluctuations in foreign currencies." said Murray Souter, President and CEO of Diamond Estates. "We are also extremely proud of our talented winemaking staff that consistently produce award winning wines across a broad spectrum of red and white varietals. This commitment to quality is a key tenet in our strategy of building strong brand loyalty with our customers."
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and a sales agent for over 120 beverage alcohol brands across Canada. The company operates two wineries in the Niagara region of Ontario producing VQA and blended wines under such well-known brand names as 20 Bees, EastDell Estates, Lakeview Cellars, Dois Amigos, Dan Aykroyd, Benchmark and Seasons. Through its partnership, Kirkwood Diamond Canada, the Company is the sales agent for top selling international brands in all regions of the country as well as being a distributor in the western provinces. These recognizable brands include Fat Bastard wines from France, Kaiken wines from Argentina, Charles Wells beers from England, Hpnotiq Liqueur from France, Anciano wines from Spain, Francois Lurton wines from France and Argentina, Blue Nun wines from Germany, coolers and spirits from Independent Distillers in New Zealand, Brick Brewing from Canada, Evan Williams Bourbon from USA, Flor de Cana rum from Nicaragua, Iceberg Vodka from Canada and many others. For further information on the company, please visit the company's SEDAR profile at www.sedar.com.
Diamond Estates Wines & Spirits Inc. common shares trade on the TSX Venture Exchange (symbol: DWS).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statement
This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diamond Estates Wines and Spirits Inc.to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the economy generally; consumer interest in the services and products of the Company; financing; competition; and anticipated and unanticipated costs. While the Company acknowledges that subsequent events and developments may cause its views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of the Company as of any date subsequent to the date of this press release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Diamond Estates Wines & Spirits Inc.
For further information: J. Murray Souter, President & CEO, Diamond Estates Wines & Spirits Inc., [email protected], 905 641 1042 Ext 234; Alan Stratton, CPA, CA, Chief Financial Officer, Diamond Estates Wines and Spirits Inc., [email protected], 905-641-1042 Ext 225