Vintage Wine Estates, Inc. sold the 42-acre Tenma Vineyard in Calistoga, Calif., for net cash proceeds of approximately $11 million. Proceeds from the sale will be used to reduce outstanding debt.

Subsequent to this sale, the owns about 1,600 vineyard acres and leases 800 acres. In conjunction with the sale of the vineyard, VWE entered into a grape purchase agreement for up to 15 tons of cabernet sauvignon grapes per year at no cost in the first year. In addition, the Company has licensed the rights to the Tenma Vineyard brand and trademark.

Jon Moramarco, Interim Chief Executive Officer, commented, “The Tenma Vineyard sale demonstrates our ongoing commitment to monetize assets in an effort to reduce debt and provide us with additional financial flexibility. We will continue to pursue more of these initiatives where the economics are beneficial, as part of our recently announced business realignment plan.”