Playboy Spirits, a joint venture formed by PLBY Group, Inc. announced the initial closing of more than $13 million in funding from a private placement of senior secured convertible notes by the joint venture’s wholly-owned operating subsidiary and may receive additional funds in a subsequent closing.
Playboy Spirits is owned 40% by a wholly owned subsidiary of PLBY Group and 60% by XLV. Conversion of the Notes could result in the dilution of Playboy Spirits’ ownership of the Operating Subsidiary by up to 50% but 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, including the continued acquisition of rare, aged spirits to be released under the Rare Hare brand with Playboy co-branding. Playboy Spirits holds a trademark license to use Playboy branding and artwork with royalties payable to Playboy from the sales of all Playboy Spirits products. Playboy Spirits’ and the Operating Subsidiary’s operations are primarily run by SIP pursuant to a professional services agreement.
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.
Marc Bushala, Chief Executive Officer of XLV, SIP and Playboy Spirits added, “It has been amazing to develop Rare Hare in partnership with a global brand like Playboy. For the past several years, SIP has discreetly procured unique and rare spirits from around the world to offer in limited releases under the Rare Hare brand.”
Since its launch early last year, Playboy Spirits has released two special batches of Rare Hare Anejo Conejo tequila in collaboration with Codigo 1530, Rare Hare 1953, a 17-year-old bourbon, and Rare Hare Lapine, a 60-year-old cognac. The Rare Hare brand is a nod and a wink to the iconic Playboy Rabbit Head but also conveys the scarcity of these limited product releases. Rare Hare can be found at select retail shops and online at https://www.rareharespirits.com.
