Playboy Spirits JV Closes Over $13M In Funding

PLBY Group Inc PLBY joint venture Playboy Spirits has closed more than $13 million in funding from a private placement. The joint venture may also receive additional funds in a subsequent closing.
Playboy Spirits is owned 40% by a wholly owned subsidiary of PLBY and 60% by XL Ventures II LLC (XLV).
Conversion of senior secured convertible notes could dilute Playboy Spirits' ownership of JV's wholly-owned operating subsidiary by up to 50%. Still, it would not reduce Playboy Spirits' managerial control of the business.
The capital raised will fund the operations of Playboy Spirits and the operating subsidiary's business.
Playboy Spirits holds a trademark license to use Playboy branding and artwork, with royalties payable to Playboy from selling all Playboy Spirits products.
In 2023, Playboy Spirits expects to release limited-edition spirits in the U.S. and Asia, and plans to enter the ready-to-drink canned beverage category.
Also Read: PLBY Group Initiates Common Stock Rights Offering
Price Action: PLBY shares are trading higher by 4.33% at $2.65 on the last check Thursday.