24th Nov 2023 13:27
(Alliance News) - Distil PLC on Friday said it has raised money for working capital.
The London-based premium drinks manufacturer has brands including RedLeg Spiced Rum, Blackwoods Gin & Vodka, Trove Botanical Vodka and Blavod Black Vodka.
The company said it raised GBP765,000 via issuing 218.6 million shares at issue price for working capital "to enable Distil to service customers with stock at the busiest time for the business and allow it to support its growth plan to the end of March 2025."
Distil shares rose 8.4% to 0.49 pence each on Friday afternoon in London.
Further, Grain GmbH, connected to non-executive director Roland Grain, has agreed to invest GBP200,000, and shareholder BERO SAS, associated with French banker Eric de Rothschild, has agreed to invest GBP120,000 for in total 91.4 million shares in the subscription.
Distil Executive Chair Don Goulding said: "Proceeds raised will be managed carefully by the business and will not only allow us to service our key customers to a high standard throughout the busiest time of the year, but will continue to make positive impacts on the business, supporting growth through to March 2025 and beyond. An increase in working capital will allow us to lower frequency but increase the size of production runs to take advantage of cost savings afforded by working in this way. Cost management will continue to be a key area of focus for the business."
He added: "Design development of the Blackwoods brand experience at Ardgowan is near finalisation, with plans to open to the public in Q1 following commencement of gin distillation across the range in February 2024. Finally, proceeds will also be used to brand and bring to market already developed liquid in an exciting emerging category in 2024. This will take the business into a new space that is gaining attention with a unique proposition."
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.