Shares in brewer the Gage Roads Brewing Co Limited (ASX: GRB) have climbed nearly 10% in Friday trade despite the company informing the market it’s not aware of any information as to why the company’s valuation may be soaring higher.
Gage Roads shares have been volatile for several years in moving from above 25 cents to below 5 cents as the company used to carry a relatively substantial amount of debt and struggled to meet sales forecasts amidst a competitive craft beer market.
For the quarter ending September 30 2017, Gage posted an operating cash loss of $2.4 million on revenues of $6.65 million, with the group having $2.4 million cash in hand on the balance sheet.
The brewer also reported that as at the end of the September quarter it was in a “debt free position”, with debt facilities of up to $6 million remaining in place but undrawn.
The group claims that the craft beer market has grown by an estimated 16% compound annual growth rate over the past three years and now represents 11% of Australia’s total beer market.
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