Ardgowan Distillery raises fresh capital to unlock £2 million in bank funding

Distil said Ardgowan Distillery has raised fresh capital and unlocked additional bank funding that will let the Scotch whisky producer keep building maturing malt stocks, a step that could support future supply in the premium spirits market.

In an update released Thursday, Distil, the AIM-listed owner of Blackwoods Gin and Vodka, RedLeg Spiced Rum and Blavod Black Vodka, said Ardgowan raised £1,070,500 through the issue of 42,820 new shares at £25 each. The new shares represent 9.3% of Ardgowan’s issued share capital.

The share sale was offered to existing Ardgowan shareholders. Distil said it chose not to take part because it is prioritizing its own cash reserves. As a result, its stake in Ardgowan fell from 10.5% to about 9.6%, although it still holds 48,247 shares in the distillery company.

The company said the fundraising forms part of a broader effort by Ardgowan to simplify its balance sheet. That process included the conversion of all convertible loan notes into shares, a move Distil had already disclosed in late June after its own convertible loan note in Ardgowan was converted into equity.

According to Distil, the new equity was raised so Ardgowan could settle other debts in the business. Doing that then released the next £2 million tranche under a revolving credit facility provided by Nationwide Building Society, which trades as Virgin Money.

Distil said the added borrowing materially improves Ardgowan’s cash runway and allows it to continue laying down malt whisky for aging. For whisky producers, that matters because spirit must be financed years before it can be sold. Continued investment in inventory today can help protect future availability and provide more stability for premium Scotch portfolios, even though demand and market conditions can still change over time.

The announcement was issued as inside information under U.K. market abuse rules. Distil said Don Goulding, its executive chairman, was responsible for arranging the release.

The update offers a clearer picture of how smaller drinks companies are managing capital while trying to preserve long-term production plans. In whisky, where stock must sit in cask for extended periods before reaching the market, access to equity and credit can shape not only a distillery’s balance sheet but also its ability to maintain output for future bottlings.