Playboy Spirits closes over $13M in funding

Playboy Spirits, a joint venture formed by PLBY Group and XL Ventures II, 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.