US: Castle Brands to raise US$7m via private placements
Castle Brands agrees finance deal
Castle Brands has signed deals to raise US$7m via a share issue to private investors, in order to "maintain our path to profitability".
The Gosling's rum and Jefferson's Reserve Bourbon producer said yesterday (9 June) that it has entered into definitive agreements to raise the funds via a series of private placements.
"This is an important transaction for Castle Brands," said company president and CEO Richard Lampen. "The additional capital enhances our ability to attract new brands, further strengthens our relationship with distributors and enables us to maintain our path to profitability," he said.
"The debt conversion also should better position Castle Brands to access traditional third party working capital financing.”
In February of this year, Castle said that net losses in the three months to the end of December deepened by 625.6%, to $1.5m.
Castle Brands has said that a combination of higher net sales on key brands and job cuts are moving the company towards the black, after it trimmed losses in the first half of its fiscal year....
SABMiller is focusing on local premium beers in Africa and believes that there is an untapped US$3.7bn of sales across nine of its key markets on the continent....
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