Moscow, Russia (PRWEB) February 11, 2009
Russian-based, Nagatinskiy Ruskos Ltd. (NRL), a super-premium luxury Vodka producer, announced today the completion of a $12.5 million financing led by QWAS Capital Corp. This latest financing round is expected to accelerate market expansion, extend Nagatinskiy's leadership position within the Vodka market, and help Nagatinskiy establish a new line of super-premium branded Vodka.
The company, maker of 2 extremely popular vodka brands, intends to tap Wall Street later this year for a $10 million funding program, and plans to launch an initial public offering (IPO) on the NYSE Alternext U.S., formerly known as the American Stock Exchange (AMEX) as soon as it meets the necessary listing requirements, the company said Monday.
"Our aim is to become a public company. We are ready to go through all the necessary procedures to prepare for an IPO," Nagatinskiy's main shareholder Alex Smid said.
This accelerated expansion of NRL is part of the long term strategy and structural changes previously announced at a news conference in 2007 after the tragic death of Nagatinskiy's founder Mikhail Safronov. At the time, NRL belonged to only two shareholders. Mr. Smid owned 49 percent, with the rest being Mr. Safronov's stake. Since his death, Safronov's share package has been inherited by a group of beneficiaries represented by MSLOBO a private trust managed by Mr. Igor Fedotkin. The spreading of the shares among several people will not lead to the holding being divided, Mr. Fedotkin assured. The names of the beneficiaries will not be made public until the end of a six-month legal procedure, he said. During the six to eight months needed to prepare for an IPO, Nagatinskiy's shareholders have signed an agreement to abstain from selling shares or changing the structure of the company.
Mr. Fedotkin and Mr. Smid said they appointed three business division heads to oversee each market sector that the holding is involved in, and to maintain aggressive market activity. Among long-time planned projects was the construction of two alcoholic drink factories. After Safronov's death the plans had been stalled at the stage of negotiations with local authorities. The Company explains the delay is part of standard business procedure in Russia. "There are paperwork and logistics procedures that need to be observed," Mr. Smid said.
Smid, principal and main shareholder of the company, whose present backers include Jeff L. Wagner of investment powerhouse QWAS Capital Corp., plans to embark on an expansion drive to take turnover from 2008's modest $2,600,000 to $16 million in two years.
"We are very excited about our investment in Nagatinskiy," said Jeff Wagner. "Nagatinskiy has quickly become the leader in the growing Vodka market and has secured an impressive distribution network. We believe the company will continue to grow rapidly, offering a smooth, balanced and clean tasting beverage to consumers across the world. We welcome the opportunity to work with our fellow investors to help take the company to its next level of success," Mr. Wagner said.
The company is developing a third brand, 'PureRed', for the 'super-premium' market, starting in the USA. Smid and associates hope this brand will emulate the sales growth of the other two, whose combined case sales rose from 52 to 8,160 between 2004 and 2008. As yet, profits have eluded Nagatinskiy, which has been spending on marketing and development and lost $2,340,000 last year. The Company has raised nearly $15.5 million privately since 2004.