Wine merchant Dawine is back in the market, rejoining on Friday after news that negotiations with a potential investor had fallen through.

Dawine (ASX:DW8) which sells Aussie wine to the Chinese, had been in a trading halt since the end of November.

“Negotiations with the potential strategic investor have ended in its current form due to complex regulatory issues and the consequential timing issues this presented,” chairman Piers Lewis told investors.

“Discussions are ongoing with the strategic investor, and other strategic partners/investors about a potential capital investment into Dawine.”

Dawine opened its new year down 35 per cent to 0.9c.

Shares in Dawine since May 2017. Pic:
Shares in Dawine since May 2017. Pic:

The company made a big splash last year about its participation in a massive car show in Inner Mongolia, but the wine sales were disappointing.

Mr Lewis did not wish to share the figures and said while they didn’t sell out they didn’t come back with excess stock, but he’d expected to sell more.

The last quarterly report showed they had $2 million in cash, but took $88,000 in receipts.

Stockhead is seeking comment from Dawine.