Diamond Estates taps Lassonde for $3.9M loan to fund inventory
What's the deal? Ontario-based Diamond Estates Wines & SpiritsDealroom has a profile for this one. Try Dealroom → (TSXV: DWS) has received an unsecured, non-revolving term loan of US$4.03M (roughly $3.9 million) from its controlling shareholder, Lassonde Industries. The loan carries interest at Bank of MontrealDealroom has a profile for this one. Try Dealroom → prime plus 2.25% and matures on June 30, 2027.
Where the money goes: Diamond Estates will use the proceeds to fund a $2 million increase in inventory, cover a $5.4 million harvest, repay about $0.96 million of debt, and spend roughly $0.4 million on capital projects. Those projects include launching the 1067 Kitchen at Lakeview Wine Co. and renovating Shiny Apple Cidery.
Why now? The loan lands as Diamond Estates faces a softer top line, with Q1 FY2027 revenue falling to $7 million from $8.2 million a year earlier. Repayments of $1.25 million are due in January, April, and June 2027, tied partly to payouts from the Ontario VQA Wine Support Program.
What could go wrong? The borrowing deepens Diamond Estates' reliance on Lassonde. The company took a $1 million advance in May and a $3.6 million working-capital loan last year; the new facility supplies liquidity but adds near-term repayment obligations.
The signal: This is a working-capital bridge, not a sign of a sector fundraising wave. Ontario's wine market is mixed — VQA sales at the LCBODealroom has a profile for this one. Try Dealroom → rose while winery-retail sales fell, and US trade restrictions add uncertainty — leaving Diamond Estates leaning on its parent to carry inventory and harvest costs through a slower stretch.
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