Scheid Family Wines Announces Sale of Three Vineyard Properties ($SVIN)

Oddball grape farmer, vineyard, and wine producer Scheid Vineyards Inc. announced the following the night before Good Friday,
Salinas, California, April 2, 2021. Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today that it sold three of its vineyard parcels for $33,000,000 in consideration, which includes the buyer assuming $20,000,000 of the Company’s debt that was secured by the properties. The disposition of these parcels, which comprise 1,193 acres of leased and owned vineyards, is part of Scheid Family Wines’ overall strategy to better align its asset holdings and debt with its growing premium bottled wine business.
Mr. Scott Scheid, President and CEO of the Company, stated, “We are pleased to complete this transaction and continue to focus our attention and resources on the growth of our branded goods portfolio, which includes our recently launched entrant in the trending ‘better for you’ category, Sunny with a Chance of Flowers, as well as other national and global brands.”

One of the bullish writeups that went around in 2018 thought that that Scheid's land should be worth $40k to $60k per acre. While this sale may not have been their best acreage (and location matters a lot in wine), this valuation still has to be a disappointment for Sum of the Parts investors in Scheid.

Left unsaid is what Scheid's ongoing relationship with this land and these grapes will be. Is this a sale-leaseback? Are they just going to buy the grapes? Is there any kind of long-term contract to buy them? 

Or, are they realizing that they don't need as many grapes because they can't sell that much wine?

Note that Scheid also had to sell land in 2000 to deleverage.

Previously regarding Scheid:

We have also covered Scheid in past Issues of the Oddball Stocks Newsletter.

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