Castle Brands has closed its private placement and raised US$21m.

The US-based spirits company said yesterday (9 May) that the placement, in which the firm sold stock and warrants to institutional investors, closed on Tuesday. The company said it intends to use the cash for "further brand development, acquisitions, and other corporate purposes".

The financing, initially announced last month, saw Castle sell around 3.5m shares for around $5.97 each. In addition, the placement includes the issuance of around 1.4m warrants with an exercise price of $6.57 per share. The warrants will expire five years from the date of issuance.

Earlier this year, Castle saw its second CFO resign in less than five months. Herbert Roberts followed Matthew MacFarlane out of the door in March, citing personal reasons.

Among the brands owned by Castle are Boru vodka, Gosling's rum and Knappogue Irish Whiskey.