Castle Brands, developer and international marketer of premium alcoholic drinks, has announced a US$1m share repurchase.

Castle Brands said on Monday (21 June) that it has repurchased 3.79m shares of common stock at US$0.27 per share in a privately negotiated deal.

It has also approved a plan to repurchase a further 2.5m shares, although pricing details have not been released.

"Our new stock repurchase programme will allow us to continue to enhance shareholder value," said group president and CEO Richard Lampen.

Castle Brands also announced that it has entered into a $2m loan agreement with Frost Gamma Investments Trust, which is affiliated with Phillip Frost, the company's principal shareholder and a director.

Borrowings bear interest at a rate of 11% per year and the loan matures on 21 June 2012.

In February, Castle said that it had cut losses and increased sales in the first nine months of its fiscal year.