The CEO of Simon Gilbert Wines has resigned as its rights issue has been agreed.

The company, which announced last month that Paul Pacino would resign when his contract expires, also confirmed today (5 April) that it has finalised its agreement for Coonawarra Australia Property Trust to underwrite a renounceable rights issue. The issue, set at 6.5 Australian cents, will generate additional equity of around A$2.15m (US$1.76m) through the creation of about 35.5m new shares.

"The proceeds from the issue will provide the company sufficient operating capital to allow it to grow its existing businesses and participate in opportunities that may present themselves as the industry recovers from what is considered to be the low point in the industry economic cycle," the company said.

The share offer will close on 11 May.

As announced two months ago, Pacino has stood down, while Andrew Bursill has retired as company secretary, to be replaced by Charlie Latham, the company secretary at Coonawarra Premium Vineyards. Andrew Parkinson, previously a non-executive director, has been appointed to the roles of managing director and CEO.

Three new directors have been added to the board, meanwhile. Rex Watson, currently group managing director of Coonawarra Premium Vineyards Limited, is joined by Southcorp's former CFO Peter Cleaves, and Sue Henderson, previously global sales director for Grant Burge Wines.

Earlier this year, the Australian wine group halved its net losses to A$887,906 for the six months to 31 December. Revenues more than doubled to A$3.4m.