By Joe Hoppe
Distil PLC said Tuesday that it has conditionally raised 3.2 million pounds ($4.4 million) through a placing and subscription so that it can invest in Ardgowan Distillery Co.
The spirits producer said it placed 87.5 million new ordinary shares at a price of 2 pence per placing share, raising GBP1.75 million before expenses. It will also hold a conditional subscription of 72.5 million shares, raising GBP1.45 million. The issue price represents a 13% discount to the share price on Monday, the last practicable date.
Distil–which houses the RedLeg Spiced Rum, Blackwoods Gin and Vodka, and Blavod Black Vodka brands among its portfolio–said that for every three placing shares and three subscription shares, investors will receive two warrants exercisable at the issue price for 12 months after admission.
Net proceeds will be used to invest GBP3 million in Ardgowan in the form of a convertible loan, with the option to increase the payment to GBP5 million. The loan forms part of a GBP11.4 million investment package Ardgowan will use to build its distillery and visitor center.
“We are delighted to announce our agreement and partnership with Ardgowan which we see as a fantastic opportunity to add significant growth to the business in both the short and long term,” Executive Chairman Don Goulding said.
Shares at 1141 GMT were down 0.15 pence, or 6.5% at 2.15 pence.
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View more information: https://www.marketwatch.com/story/distil-raises-gbp3-2-mln-in-placing-subscription-to-invest-in-ardgowan-271626781833