The Eastern European wine producer Asconi Corporation has completed a private placement under which the company sold restricted shares of its common stock for US$1.3m.
In a statement the company said that most of the money raised in the placement will be used for the acquisition of 980,000 rootstocks in order to start planting them on the 1,680 acres of land that were acquired last year and earlier this year.
Asconi estimates that once it owns the source of primary row material, the average cost per bottle will be lowered by 25 to 35 %.
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1,680 acres of vineyards will meet approximately 25% of the current annual grape needs of the Company.
Constantin Jitaru, president and CEO of Asconi Corporation, said: “Having our own vineyards will tremendously increase our ability to control the quality of our products and substantially lower our average costs, thus increasing our profit margins and gaining a competitive advantage over other companies in the production of wine and spirits from our region and globally.”
