Winery looks to creative financing

Mondo Cellars selling ownership shares to its club members

PASO ROBLES, CALIF—Mondo Cellars is looking in a new direction for financing to ramp up production and upgrade its operation—It’s offering its wine club members a business opportunity.

The winery sold out of its current releases ahead of schedule and found itself short on funds for the next bottling of its next seven new wines.

With banks and other lenders tightening the flow of capital, owners Mitch and Doug Mondo came up with a creative solution to the problem.

The Mondo brothers are offering an investment opportunity to their wine club members in the form of fractional ownership interests. They already have attracted investors.

The members will receive a share of Mondo’s acreage, its buildings, winery and B&B business. The property includes 82 acres, a well-appointed 4,400-sq.ft., three-room bed & breakfast, winery tasting room, a 3,200-sq.ft.-winery and barrel room and large landscaped wedding and special events area.

“It’s a little bit like a country club membership, except with Mondo Cellars plan, it would be like you owning part of the golf course too. Mondo Cellars is providing you with the ownership in the winery, and the land plus discounts on wine and fun events. This plan also has real tax and income benefits,” says Doug Mondo.

Mondo Cellars is selling stakes in 50 percent of the land and 30 percent of the winery to raise $2.68 million to reinvest in the facility improvements and marketing efforts. They also plan to improve the event plaza for receptions, weddings, and private parties. The minimum investment is $11,000.

“We’ve sold over $150,000 in shares to investors in the last 30 days alone,” Doug Mondo says. “The stock market is very volatile and real estate is trading at record lows. Real estate investments, like this one, are a great option for those concerned about inflation, as well as protecting their money by investment in a working operation.”

Mondo wine club member and local legal expert Robert Snyder has recently invested. “Diversification of income is a smart move in this economic climate and when you can get a preferred payout position in a real estate investment for $11,000 and throw in the added lifestyle benefits of owning part of a growing Paso Robles winery, well it not only makes sense, but it looked to me like a safe bet, and an irresistible opportunity” says Snyder who heads up the legal teams for companies like Dallas based DNA Next, and publicly traded Virtual Medical International, Inc.

Mondo has prepared investor packets with detailed descriptions of how the money will be used to help grow the sales and profits of the company and how much stakeholders will get in return.

Owner benefits

• • A real estate investment with tax loss/gain pass through and annual K1 filings.
• • No annual dues or fees.
• • Tax benefits of depreciation during ownership.
• • A solid inflationary hedge.
• • Liability limited to capital invested.
• • All sale, refinance proceeds, and profits from the winery operation will be distributed to Class A members first until they have received their original contributions, plus 8% percent annually from the date of contribution, less any disbursements already received.
• • Access to the Villa nel Mondo private club facility.
• • Free wine tasting for members and guests.
• • Distributor pricing on all wines.
• • Bed & breakfast stays at 20% off

The winery is located at 3260 Nacimiento Lake Drive just outside of Paso Robles. For more information, visit their mondocellars.com or call (805) 226-2925. The tasting room is open daily from 11 a.m. to 6 p.m. in the spring and summer, with extended hours on Fridays and from 11 a.m. to 5 p.m. in the fall and winter.