Distil (AIM:DIS) slipped 27% as it unveiled a heavily discounted placing to provide the spirits group with £650,000 of working capital funding.
Roland Grain, a non-exec, is putting up £200,000 with former ITM Power boss Graham Cooley putting up another £90,000.
Shares are being issued at 0.12p, a 40% discount, with warrants attached exercisable at 0.36p.
Distil (AIM:DIS) said it will use the money to fund the production and promotion of key brands including RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka and Blavod Black Vodka for the Christmas season.
Don Goulding, Distil (AIM:DIS)’s executive chairman, said: “This funding will support working capital and brand activation over the key trading period October through December and enable us to compete as we seek to expand distribution in 2025.”
The fundraising shares will represent approximately 37.3% of the enlarged share capital.
Allenby Capital has also been appointed as the company's broker.
Shares fell 0.06p to 0.15p.