$3m raises spirits of 42 Below

Vodka and gin maker 42 Below raised $3.12 million with the placement of of 6 million new shares at 52 cents each.

The listed company revealed the deal on Christmas Eve but did not name the two local institutions that had bought in.

Chief executive Geoff Ross said the extra capital would help the company to seize opportunities in the world's largest vodka market, the United States.

"The opportunities in the northern hemisphere are of a scale where we want to have a proper go. If we put the foot down a bit further we reckon we can grow bigger, faster."

Ross said the two investors were well known and significant New Zealand fund managers.

In its half-year results announcement, the fledgling company indicated it was looking at raising capital to help fund expansion.

The money would mainly go on increasing stock and staff levels, developing new bottle moulds, and marketing in the key US and Asian markets.

The company now has just over $9 million in the bank.

"We couldn't start the new year in better shape, coming off a huge growth year, fully geared up, and with a perfect platform to start from," said Ross.

42 Below raised $13.8 million when it listed on the sharemarket last October.

It lost $2.8 million in the half year to September 30 on sales of $5.8 million. Revenue grew 175 per cent over the period.

Still yet to toast its first profit, the company is expecting to break even early next year.