US: Castle Brands completes cash infusion
Castle Brands has said that it has completed a cash infusion of US$15m, designed to improve the drinks group's stability by cutting debt.
The deal will see Castle issue around 86m shares of common stock, it said yesterday (21 October).
The drinks firm, which owns brands including Boru vodka and Limoncello, annonced last week that it had completed a cash infusion deal with several investors, led by Dr Phillip Frost.
Castle chairman Mark Andrews said: "We are very glad to have successfully completed this transaction, particularly in such a difficult financial environment. It brings a critically important equity infusion and also eliminates virtually all of our debt."
He added: "Together, these developments put our company on much firmer footing, which will enable us to pursue our original vision of building our own premium brands, supporting our existing agency brands, pursuing new agency relationships and making brand acquisitions."
Under the deal, Castle will issue 1.2m new shares Series A Convertible Preferred Stock for a price per share of $12.50. Shareholders in subsidiary firm Castle Brands Corp will also transfer their shares to the Series A stock. This will then be converted into common stock, worth an expected $0.35 per share.
Castle reduced its first quarter loss by 16% in its first fiscal quarter ended 30 June, it said in August. Full-year losses for its 2007/08 financial year deepened to $27.6m, from $16.5m a year earlier, however.
To say that Ketil Eriksen had to hit the ground running when he became CEO of Absolut six months ago would be an understatement. Overseeing a massive reorganisation and dealing with the effects of the...
Belvédère Duty Free has appointed Kyndal India PVT as the duty-free and domestic distributor of Danzka and Sobieski vodkas throughout the Indian subcontinent....
A UK-based drinks company has been slammed by the Portman Group for breaching the group's code of practice in the country....
Pernod Ricard has reported a 12% drop in like-for-like sales for its third quarter and launched a EUR1bn rights issue in order to help reduce debt....
Philadelphia Distilling has appointed former Pernod-Ricard Americas CEO Alain Barbet as senior advisor to the company....
First Drinks Brands, the distribution business owned by whisky distiller William Grant & Sons, plans to spend GBP40m on marketing this year, following its deal to distribute Remy Cointreau brands in t...
Around 52% of adults believe that alcopops encourage underage drinking, according to a report out this week....
St Agnes has launched a new variant of its cola and brandy RTD beverage in Australia....
- Diageo Q4 & FY - Preview
- Is Diageo approaching its "Et tu, Brute" Moment?
- Has Diageo added Beer to its 'Non-Core' List?
- Diageo " knew United Spirits would be complicated”
- Focus - Diageo's FY Performance by Region
- NPD: Tomatin Contrast, Cù Bòcan
- Diageo, Heineken end South Africa, Namibia JV
- Challenges remain as Diageo posts flat FY sales
- Bacardi creates Bacardi rum marketing role
- Diageo comm's director latest to leave
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research