The US drinks bottling group American Water Star said yesterday that it has closed the second tranche of its financing to raise US$8m from a private placement. The first tranche closed in mid-February.

American Water Star intends to use the net proceeds to acquire equipment and to finance accounts receivable and inventory.

The company also announced that its SB-2 registration statement filed in connection with the financing was declared effective by the Securities and Exchange Commission on May 14, 2004.