Marc Ellis pocketed more than $1 million yesterday when he and fellow founding shareholders of juice company Charlie's reduced their holdings.
Charlie's chief executive and founding shareholder Stefan Lepionka said the decision to sell $2.75 million of shares had not been easy. When the company started 11 years ago he, Ellis and Simon Neal had few financial and personal responsibilities but that had changed.
"Between the three of us, we will soon have eight children to provide for and the opportunity to sell to some of New Zealand's key investment institutions is a good opportunity for both the company and the founding shareholders."
A statement to the Stock Exchange said the shares were sold to institutional and private investors who wished "to take a meaningful stake in the company but are unable to buy enough shares on-market to satisfy their needs".
The sale of the 15.31 million shares, at 18c each, represents a 5.2 per cent reduction in shareholding between the three founders.
The founders' shares have dropped by 2.3 per cent for Lepionka, 2.25 per cent for Ellis and 0.67 per cent for Neal. Ellis and trustees of the Ellis Family Trust sold 6,610,836 shares for $1.19 million.
"This means that they still hold a significant interest in the company, and along with the company's long standing largest cornerstone shareholder, Collins Asset Management, the major shareholders have a total of 51.6 per cent of the group," the statement said.
Charlie's chairman Ted van Arkel said: "We're delighted to see these respected institutions and investors on our register. Their understanding of and support for Charlie's mission to be world-famous for our drinks is tremendous.
"We gave an update at the annual shareholders meeting ... and I was able to confirm that we look to be on track for a strong first half performance."
Van Arkel said gross sales for the six months to December 31 would be about $21 million, up 24 per cent on last year.
"Dependent on the full-year results and cash flow requirements for future growth, the board will consider declaring a maiden dividend in 2011," he said.
The company reported record earnings before interest, tax, depreciation and amortisation (ebitda) of $3.4 million in the year to June 30, which was a turnaround from a $900,000 loss a year earlier.
Marc Ellis squeezes $1.2m out of Charlie's
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