The sale of Warren Mead's Oyster Bar on the Beach restaurant in North Fremantle has hit a hurdle after the proposed buyer, Empire Beer Group Ltd, failed to raise enough capital ahead of its stockmarket listing.
Empire Brewing closed its $6.4 million raising on Friday but failed to attract an additional $2 million in oversubscriptions, which was needed to seal the Oyster Bar acquisition.
Empire wants to redevelop the site into a second Colonial Brewing Co operation.
According to its prospectus, Empire said that if it would negotiate with the Oyster Bar's vendor exclusively for three months if it failed to raise the additional $2 million but successfully listed on the ASX.
As revealed in WA Business News last Thursday, Empire reduced its original $10 million capital raising to $6.4 million, opting to pay Colonial Brewing Co founder Ross Smith additional shares and options for the brewing business rather than $3.6 million in cash.
Max Capital executive director Tony King, who is managing Empire's float, said the brewery had accepted a "marginal" amount of oversubscriptions but not enough to acquire the beachside eatery.
However, he said Empire had received a number of approaches from various parties, including property companies, which were interested in financing the development. "It's still our intention to get something done there," Mr King said.
Mr King said Empire remained committed to listing by the end of the year but it was waiting for ASX approvals.
Prolonging the Oyster Bar acquisition is the second set-back for the brewery newcomer, which came close to securing a lease at a venue at Fremantle's E Shed only to be knocked back by the venue's landlord.
