Diamond Estates Wines & Spirits Inc. Enters Into Seventh Amendment to Its Second Amended and Restated Credit Agreement
MWN-AI** Summary
On November 10, 2025, Diamond Estates Wines & Spirits Inc. (TSXV: DWS) announced the execution of a Seventh Amendment to its Second Amended and Restated Credit Agreement (SARCA) with Bank of Montreal (BMO). This amendment includes significant changes to the company's credit facilities, notably establishing a bulge amount credit facility of $3,600,000. This facility is set to mature by March 27, 2026, or sooner if Diamond requests early cancellation. Furthermore, the amendment introduces a limited recourse guarantee from Lassonde Industries Inc., which will cover the outstanding amount under the new credit facility.
The interest rates associated with the credit facilities have been adjusted as well, to reflect Prime Rate plus 2.65% during the temporary bulge period and Prime Rate plus 2.40% at all other times. Andrew Howard, President and CEO of Diamond Estates, expressed gratitude for BMO’s continual support as the company works toward a financial turnaround, which was highlighted in their Fiscal 2024/25 results.
Diamond Estates, based in Niagara-on-the-Lake, is known for producing high-quality wines, ciders, and acting as a sales agent for over 120 beverage alcohol brands across Canada. The company operates four production facilities and offers a diverse portfolio that includes renowned wine brands from countries like France, Argentina, Australia, New Zealand, Italy, and Portugal, as well as a selection of spirits and ready-to-drink (RTD) products.
With its upcoming Q2 results expected by the end of November, Diamond Estates continues to aim for growth within the competitive beverage industry.
MWN-AI** Analysis
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) has recently entered into its Seventh Amendment to the Second Amended and Restated Credit Agreement with the Bank of Montreal (BMO), a strategic move that highlights the company's ongoing financial restructuring. The introduction of a $3.6 million bulge credit facility, along with adjustments to the interest rates, points towards a cautious yet proactive financial stance.
The temporary bulge facility indicates that Diamond Estates is securing additional liquidity to navigate any potential short-term challenges, effectively allowing it to manage cash flow fluctuations, especially as the company approaches its Q2 results release. The current interest rate of Prime plus 2.65% during the temporary period represents a manageable cost of borrowing, especially when considering that it reverts to a lower rate of Prime plus 2.40% afterward.
Investors should view this amendment as a sign of the company's determination to strengthen its financial position while simultaneously preparing for future growth opportunities. The backing from Lassonde Industries Inc. via a limited recourse guarantee further underscores confidence in Diamond's strategic direction and operational capabilities.
Diamond's diverse portfolio, including well-known wine, spirit, beer, and cider brands, positions it strategically within Canada’s competitive beverage market. The company's participation in representing a broad array of international brands additionally provides a revenue buffer against market volatility.
As Diamond continues to refine its operations and capitalize on these recent financial adjustments, potential investors may want to monitor upcoming earnings announcements closely. If the Q2 results reflect a positive trend in sales and operational efficiency, it could catalyze a favorable outlook for the stock. However, prudent investors should also be aware of the ongoing challenges in the beverage industry and maintain a cautious approach amidst market fluctuations.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Niagara-on-the-Lake, Ontario--(Newsfile Corp. - November 10, 2025) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or the "Company") announces that effective as at November 10, 2025 it entered into a further amendment (the "Seventh Amendment") to its Second Amended and Restated Credit Agreement (the "SARCA") with Bank of Montreal ("BMO"). Capitalized terms not defined below are defined in the SARCA. The notable terms of the Seventh Amendment are as follows:
- Credit Facilities. The establishment of a bulge amount credit facility (the "Bulge Amount") of $3,600,000 which matures on the date ("Temporary Bulge Period") that is the earlier of (a) the date on which Diamond requests in writing that the Temporary Bulge Period be cancelled and terminated (provided that such early termination shall not cause any Credit Excess (as defined in the SARCA) to exist and (b) March 27, 2026;
- Limited Guarantee. The addition of a limited recourse guarantee granted by Lassonde Industries Inc., in favour of BMO in an aggregate amount not exceeding the Bulge Amount then outstanding under the RT Facility.
- Interest Rates. The interest rates have been amended to be Prime Rate plus 2.65% during the Temporary Bulge Period and Prime Rate plus 2.40% at all other times.
"We want to thank Bank of Montreal for its ongoing support as Diamond continues its financial turnaround, as reflected in our Fiscal 2024/25 March 31 year end and Q1 results," said Andrew Howard, President and CEO of Diamond. The Company will be releasing its Q2 results towards the end of November.
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer of high-quality wines and ciders as well as a sales agent for over 120 beverage alcohol brands across Canada. The Company operates four production facilities, three in Ontario and one in British Columbia, that produce predominantly VQA wines under such well-known brand names as 20 Bees, Creekside, D'Ont Poke the Bear, EastDell, Lakeview Cellars, Mindful, Shiny Apple Cider, Fresh Wines, Red Tractor, Seasons, Serenity and Backyard Vineyards.
Through its commercial division, Trajectory Beverage Partners, the Company serves as the sales agent for a wide range of leading international beverage brands.
Wine Portfolio:
Trajectory represents renowned wine brands, including Fat Bastard and Gabriel Meffre from France; Kaiken from Argentina; Kings of Prohibition from Australia; Yealands, Kono, Tohu, and Joiy Sparkling Wine from New Zealand; Talamonti and Cielo from Italy; Porta 6, Julia Florista, Boas Quintas, Catedral, and Cabeca de Toiro from Portugal; as well as C.K Mondavi & Family, Charles Krug, Line 39, Harken, FitVine, and Rabble from California. Trajectory also represents a broad portfolio of wines sold exclusively to restaurants, bars and private consumers.
Spirits Portfolio:
The Company also represents distinguished spirit brands such as Tag Vodka, Ginslinger Gin, and Barnburner Whisky from Ontario; Cofradia Tequila and Hussong's Tequila from Mexico; Islay Mist and Waterproof blended Scotch whiskies from Scotland; Glen Breton Canadian whiskies from Nova Scotia; Five Farms Irish Cream Liqueur and Broker's Gin from the UK; Tequila Rose Strawberry Cream, 360 Vodka, and Holladay Bourbon from the USA; Giffard Liqueurs from France; and Becherovka from the Czech Republic.
Beer, Cider, and RTD Portfolio:
In the beer, cider, and ready-to-drink (RTD) categories, Trajectory represents Bench Beer, Henderson Beer, Niagara Craft Cider, TAG and Ginslinger RTDs, and Darling Mimosas from Ontario; Rodenbach beer from Belgium; La Trappe beer from the Netherlands; and Warsteiner beer from Germany.
For more information, please contact:
Andrew Howard
President & CEO
[email protected]
Contact number: 905-685-5673
Basman Alias
Chief Financial Officer
[email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273897
FAQ**
How might the Seventh Amendment to Diamond Estates Wines & Spirits Inc. DWS:CC's credit agreement impact its operational capabilities in Niagara-on-the-Lake, Ontario, particularly for its wine and cider production facilities?
With the establishment of the $3,600,000 Bulge Amount credit facility, what strategic investments or initiatives is Diamond Estates Wines & Spirits Inc. DWS:CC planning to implement in Niagara-on-the-Lake to enhance its market position?
Given Diamond Estates Wines & Spirits Inc. DWS:CC's diverse portfolio, how is the company planning to leverage its wine brands and commercial division in Niagara-on-the-Lake to drive sales growth?
What are the long-term financial implications for Diamond Estates Wines & Spirits Inc. DWS:CC as it moves through the Temporary Bulge Period, and how might this affect its competitive edge in the Niagara-on-the-Lake beverage market?
**MWN-AI FAQ is based on asking OpenAI questions about Diamond Estates Wines & Spirits Inc. (TSXVC: DWS:CC).
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