Precept Wine, LLC acquired wholesale wine business from Truett-Hurst, Inc. (NasdaqCM:THST) for $18.3 million on August 13, 2018. Precept Wine acquired all the assets comprising the wholesale wine business in cash and the consideration is subject to post-closing adjustments and ongoing royalty payments relating to certain of the acquired wholesale wine brands pursuant to a Royalty Payment Agreement. Truett-Hurst will retain its Direct to Consumer business and Dry Creek Valley Estate in Healdsburg, California. Truett-Hurst will continue to provide certain services to Precept Wine relating to the wholesale wine business through the current harvest period under a Transition Services Agreement. Phillip Hurst, Truett-Hurst's current Chief Executive Officer, has accepted the position of Chief Innovation Officer with Precept Brands as of November 1, 2018. Phillip Hurst Hurst will remain a board member of Truett-Hurst. Truett-Hurst expects to use the proceeds from the sale to eliminate indebtedness and to invest in its direct to consumer business. Truett-Hurst will also consider using a portion to provide returns to its public stockholders. David Makarechian, Esq. of O’Melveny & Myers LLP acted as legal advisor to Truett-Hurst, Inc. Tim Hogan of Fox Rothschild LLP acted as legal advisor to Precept Wine, LLC. Precept Wine, LLC completed the acquisition of wholesale wine business from Truett-Hurst, Inc. (NasdaqCM:THST) on August 13, 2018.