
Australia’s Mighty Craft has secured an agreement with senior lender Pure Asset Management in a bid to reduce its debts.
Publicly listed Mighty Craft, which is in talks to merge with local brand Better Beer, has bought out Pure Asset Management from a royalty deal covering the drinks group’s wholesale revenue.
In exchange, Mighty Craft will sell 7.5% of its business to Pure Asset Management.
Last month, Mighty Craft said it was in early talks with the shareholders of Better Beer – in which it owns a 33% stake – over a possible merger.
The companies are looking at a deal that would see Mighty Craft buy the remaining shares in Better Beer. In return, Better Beer’s shareholders would be issued shares in Mighty Craft and a subsequent capital raise
At the time, Mighty Craft said if a deal was not struck with Better Beer its board believed it “would likely be difficult to secure the additional debt or equity funding that would be required to allow the company to continue its operations”.

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By GlobalDataUnder the terms of the deal with Pure Asset Management, Better Beer’s shareholders have agreed to waive their pre-emptive rights on the sale of Mighty Craft’s shares and “welcome Pure onto the Better Beer register”, Mighty Craft said in a stock-exchange filing issued today (16 May).
Katie McNamara, Mighty Craft’s MD, said: “The royalty swap represents further meaningful debt reduction, which is a key focus of the MCL board. This, combined with the A$2.3m debt reduction announced in Q3 FY24 and the proposed flow of funds from the settlement of the 78 Degrees and Mismatch sale, will represent over A$10m of debt reduction across H2 FY24.”
Last month, the company announced plans to sell beer brand Mismatch Brewing Co. and gin label 78 Degrees Distillery.
The group first announced plans to divest some of its “larger assets” last August in a bid to cut costs and obtain “sustainable earnings”.
A month earlier, Mighty Craft announced the sale of its Jetty Road brand and that it had entered a non-binding agreement for the sale of its Foghorn Breweries. The company said it had also received interest in Better Beer from equity investment to an outright sale.
In May last year, it also launched a strategic review that included taking A$10m from the sale of some of its smaller brands like Jetty Road and Foghorn Breweries.
Better Beer was founded in 2021 by comedians Jack Steele and Matt Ford. The company offers a healthier beer option with zero carbohydrates, along with a zero-alcohol beer as well.