Distil raises £0.76m to bolster working capital
By Josh White
Date: Monday 15 Sep 2025
(Sharecast News) - Distil announced the raising of £0.76m through a placing of new shares on Monday, to bolster its working capital and support expansion plans as the owner of RedLeg Spiced Rum and Blackwoods Gin eyed stronger trading in the second quarter.
The AIM-traded drinks group said it had conditionally placed 580.8 million new ordinary shares at 0.13p each, representing a 26% discount to its last closing price.
It said the fundraising would be carried out in two tranches, with 290.6 million shares expected to be admitted to AIM on 18 September and the remaining 290.2 million subject to shareholder approval at the company's annual general meeting on 30 September, ahead of admission on 2 October.
Participants in the placing would also receive warrants on a one-for-one basis, exercisable at 0.2p within two years, which could raise a further £1.2m if fully exercised.
"I'm pleased to announce a successful round of fundraising, the majority of which will be used as working capital to enable us to activate strongly during our upcoming peak trading period," said executive chairman Don Goulding.
"In addition, funds will be used to complete and open the Blackwoods Brand Home on the site of the Ardgowan Distillery, as well as support new markets and new listings in the UK on-trade."
Distil said the net proceeds of around £0.68m would cover its near-term funding needs, including the completion of its audit for the year ended 31 March, and should provide sufficient working capital for the next 12 months assuming sales track in line with expectations.
Second-quarter revenue was expected to be about £0.25m, up 269% on the first quarter and broadly flat year-on-year, with £0.2m already recorded for July and August.
Calendar-year revenue for the nine months to 30 September was projected to rise 6% to about £0.74m.
The company confirmed that existing major shareholder Dr Graham Cooley was investing £0.1m for 76.9 million shares as part of the placing, which would leave the new shares representing about 29% of the enlarged share capital once both tranches had been admitted to AIM.
At 1101 BST, shares in Distil were down 20.69% at 0.14p.
Reporting by Josh White for Sharecast.com.
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