Truett-Hurst wine company goes public

HEALDSBURG -- Truett-Hurst, Inc. on Thursday started trading on the Nasdaq Capital Market at $6 a share.

In a bad day for North Bay stocks and larger indexes, the share price for Truett-Hurst stock, trading under the symbol THST, opened at $5.94 and briefly dipped to $5.30 before rallying and settling around $5.70. The price at the close of the Thursday session was $5.67, down 5.5 percent, on 204,403 shares traded.

The initial public offering of 2.7 million shares of Class A common stock is expected to close June 25, raising up to $21.6 million, according to the announcement and Monday's amendment to the prospectus. The Securities & Exchange Commission on Wednesday approved the registration of the offering.

That's about half the $43.5 million Truett-Hurst set out to raise when it filed for the IPO in late March, anticipating pricing of $11 to $15 on each of 2.9 million shares originally planned for the offering.

Truett-Hurst intends to use the net proceeds from the offering to pay down amounts owed under its credit facility, for working capital, capital expenditures, hiring additional personnel and for general corporate purposes.

The company is the sole owner of vintner and wine marketing company HDD, LLC. The latter was started by Phillip Hurst, a veteran of another publicly owned wine company Golden State Vintners and co-founder of Novato-based Winery Exchange, and Paul Dolan III, whose credits include building Hopland-based Fetzer Vineyards into a large environmentally sensitive vintner.

HDD owns four brands: Truett-Hurst, VML, Healdsburg Ranches and Bradford Mountain. It also has a custom-label business that builds brands for exclusive sale through retailers while retaining brand ownership.

San Francisco-based W.R. Hambrecht + Co., LLC, is leading the offering, made through its OpenIPO auction-based process. CSCA Capital Advisors, LLC, Feltl and Company, Inc. and Sidoti & Company, LLC, are co-managers for the offering.

This story was updated June 20 at 1:13 p.m.

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