Distil (AIM:DIS) announced it is raising £755,000 of new funds through the sale of 580.8 million new shares priced at 0.13p each, supporting working capital as the firm is completing the Blackwoods Brand Home at the Ardgowan Distillery.
Investors will also receive share warrants exercisable at 0.2p per share.
"I'm pleased to announce a successful round of fundraising, the majority of which will be used as working capital to enable us to activate strongly during our upcoming peak trading period," executive chair Don Goulding said.
"In addition, funds will be used to complete and open the Blackwoods Brand Home on the site of the Ardgowan Distillery, as well as support new markets and new listings in the UK on-trade.
Dr Graham Cooley, an existing substantial shareholder with 18% of the company, is participating in the raise, investing £100,000.
In London, Distil shares dropped 20% to 0.14p from Friday's 0.18p close.