Diamond Estates Wines & Spirits says the TSX Venture Exchange has accepted the reinstatement of trading in its common shares, effective at market open on or about October 21, 2025, or two business days after the bulletin is issued, following completion of delayed filings in August. The company also disclosed a sixth amendment to its credit agreement with Bank of Montreal that includes lender waivers of certain defaults, notably the fixed charge coverage ratio, signalling near term covenant relief while the turnaround progresses.
The timing coordinates public market access with incremental balance sheet flexibility, a pairing that typically lowers execution risk on operating plans when done before a results cadence. Retail expansion is doing some heavy lifting in Ontario.
Quantify Liquidity And Covenants
Start with the debt stack. The November 15, 2024 third amendment to the Second Amended and Restated Credit Agreement introduced a 2.5 million dollar non revolving demand facility, reduced the term facility to about 3.0 million dollars from 8.7 million dollars, added a limited recourse guarantee from Lassonde Industries in favour of BMO up to the demand facility obligations, and reset rate spreads to prime plus 3.15 percent on the demand line with base rate loans at lower spreads on revolver and term tranches.
Those mechanics, together with the November 11, 2024 replacement of 4.759 million dollars of unsecured convertible debentures at a 0.24 dollar conversion price and a new November 9, 2025 maturity, frame today’s waiver context and the maturity wall that management must navigate over the next 12 months. The sixth amendment’s waiver of fixed charge coverage reduces immediate default risk, but it does not remove the need to restore covenant compliance through sustainable gross margin and cash generation as waivers typically sunset on defined tests and dates.
“We are pleased with BMO’s ongoing partnership and support,” said Andrew Howard.
Track Operating Momentum And Mix
Against that balance sheet, operating trends matter. For Q1 fiscal 2026, revenue increased to 8.3 million dollars from 6.2 million dollars, gross margin rose to 56.5 percent from 44.8 percent, EBITDA turned positive to 1.4 million dollars, and net income was 0.4 million dollars, with management attributing improvement to grocery and emerging convenience channel volumes and enhancements in the VQA wine support program. That mix shift, if maintained, can expand cash conversion because winery margin uplift more than offset agency distribution headwinds from the prior sale of Western Canada operations, though it remains volume dependent in a price sensitive category.
“Q1 2026 was the strongest performing quarter since Q3 2018,” said Andrew Howard, underscoring momentum into the reinstatement window.
Additional housekeeping noted in the October 16 disclosure includes 197,222 DSUs granted in February 2024, settlement of a 17,000 dollar convertible debenture plus interest via 94,258 common shares in March 2025, and clarification of 190,560 dollars of related party purchases of apple juice from Golden Town Apple under MI 61 101 exemptions, useful governance detail for assessing recurring related party flows. Management guides to Q2 fiscal 2026 results by end of November 2025, which will provide the next read on gross margin durability and channel performance.
Set Near Term Catalysts And Risks
Now focus on dates. Trading is expected to resume on or about October 21, 2025, the annual meeting is scheduled for October 30, 2025, and the Q2 release is planned by end of November, each a checkpoint for liquidity, disclosure, and forward guidance. Between those markers, the key investor tasks are to track covenant language around the sixth amendment as it becomes available, to reconcile volumes in grocery and convenience with gross margin mix in winery versus agency, and to watch any incremental capital structure actions that address the November 2025 convertible debenture maturity and any residual bank tests that could re engage fixed charge coverage in early 2026.
Execution on these items will determine whether waiver driven flexibility translates into sustained free cash flow and a durable return to normal listing status after the reinstatement period. The bulletin confirming the exact reinstatement date remains pending at time of writing, and the issuer states the TSXV has accepted reinstatement terms while filings completed in August.
