PicoBrew, the Seattle-based maker of high-tech beer, spirits and coffee brewing appliances, is up for sale the Spoon has learned.
According to company CEO Bill Mitchell, PicoBrew had until mid-December to close a new funding round as part of terms agreed to with a bridge lending group comprised of current and new PicoBrew investors. PicoBrew had decided to take on bridge financing last year as it looked to lock down its second institutional funding round.
Mitchell said conversations went fairly deep and they entered due diligence conversations with a few potential strategic investors, which led the lending group to extend the original due date on the loan from June to mid-December of last year. However, PicoBrew ultimately wasn’t able to close the funding round, and the bridge lender decided to call in the loan and force PicoBrew into selling the company through a somewhat complicated process called receivership.
Mitchell indicated the bridge lending group has plans to continue funding the company through the Washington State receivership process and hopes to essentially take full ownership of the company with a winning bid, but runs the risk that another bidder will swoop in with a higher bid.
Mitchell told me the receivership motion was filed yesterday.
So how exactly did PicoBrew get itself into this position in first place?
According to Mitchell, it’s a complicated story in part because the company’s product portfolio has become…