Troubled spirits group Distil has conditionally raised £650k to give it a lifeline through the key Christmas trading period.
A placing at a steep 40% discount to last week’s share price is set to raise £430k, while the company has secured a further £220k from existing shareholders.
Distil plans to use the cash to shore up working capital and fund promotions for the festive season and production of limited-edition stock, as well as supporting its major listings in the on and off-trade.
Executive chairman Don Goulding thanked shareholders for the continued support.
“This funding will support working capital and brand activation over the key trading period October through December, and enable us to compete as we seek to expand distribution in 2025,” he said.
It follows the RedLeg Spiced Rum, Blackwoods Gin and Blavod Black Vodka owner revealing an unexpected shortfall in its finances in August.
Distil also, at the time, issued a profits warning as revenues unexpectedly plunged by 55%, as the group was hit by a downturn in the global spirits market.
Shares of the penny stock collapsed by 45% to 0.23p on the back of the warning.
Today, the stock sank another 21% to 0.16p as a result of the discounted placing price of 0.12p a share being announced.
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