Melbourne-based distiller Top Shelf International (TSI), producer of Australia’s first agave spirit, is exploring sale opportunities after suspending shares in October.

TSI, which released Australian agave spirit Act of Treason in January 2024, confirmed that it had appointed EY’s mergers and acquisition team.

In a statement, a TSI spokesperson said: “Top Shelf International has engaged EY as its advisor for a potential sale of its business or assets.

“Given the company has received both domestic and international interest, the board has formalised a process to engage the broader wines and spirits community. “

The move comes two months after TSI voluntarily suspended trading its shares on the Australian Securities Exchange (ASX) after it was unable to release its audited financial statements on 30 September 2024. The company’s CEO Trent Fraser said this was due to the company being in the process of negotiating with its senior lender and its largest creditors.

At the time, Fraser said TSI would “closely review” its operating strategy and continue talks with several parties to find funding and repay creditors.

Since launching on ASX in late 2020, its share price has dropped to just AU$0.04 each.

Furthermore, an announcement at the end of October revealed that TSI would not be proceeding with a AU$5 million (US$3.3m) sale and leaseback deal on its Eden Lassie agave farm, which was first announced in April 2024.

TSI launched its Australian Agave Project in 2021 with the aim of establishing a category for locally made agave spirits. The firm believed it had the potential to become a AU$100m (US$65m) annual business.

That same year, TSI revealed its goal of raising AU$35m (US$26.3m) to build a distillery to produce Australian agave spirits.

In addition to TSI’s 430-hectare agave farm in north Queensland, the firm has maturation facilities and bond stores located in Somerton, Victoria.

TSI also produces Australian whisky Ned and Grainshaker vodka.

In its financial results for the year ending 30 June 2024, the company reported a gross profit increase of 17.9%, from AU$6m (US$4m) to AU$7.17m (US$4.8m).

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