Shares of the company that exclusively distributes Gosling?s rums outside Bermuda hit a high of $9.70 yesterday in their market debut, but closed at the offering price of $9.

Castle Brands, which debuted on the American Stock Exchange yesterday under the ticker ROX, estimates its net proceeds from the sale of the 3.5 million shares of common stock will be approximately $27.5 million.

The company, which develops and markets premium branded spirits across the US as well as Ireland, Great Britain, Germany, France, Italy and Canada, and a number of other countries in continental Europe and the Caribbean, entered a stock subscription agreement for a 60 percent controlling interest in Gosling-Castle Partners last April.

In its prospectus filed with regulators, Castle Brands said it contributed $5 million to GCP?s capital, which consisted of $100,000 in cash and a promissory note in the principal amount of $4.9 million.

The remaining shares of the newly formed global export venture are 20 percent owned each by E. Malcolm Gosling and Gosling?s Limited.

In connection with the acquisition in GCP, Castle agreed to issue warrants to purchase 90,000 shares of common stock at $8.00 per share to three members of the Gosling family and an employee.

Castle said in its prospectus filed with the SEC that among other things it intends to use the proceeds from the IPO to fulfil capital commitments to GCP.

GCP is also paying $2.5 million to Gosling?s Export (Bermuda) Limited in exchange for the exclusive right to distribute the Gosling?s rum products and rum-related gourmet food outside Bermuda. As of this week, payments of approximately $600,000 remained.

The global distribution agreement, which commenced April 1, 2005 and has a 15-year term renewable for a further 15 years, entitles GCP to a stipulated share of the proceeds from the sale, if ever, of the ownership of any of the Gosling?s brands to a third-party, through a sale of the stock of Gosling?s Export or its parent.

Prior to selling, the Goslings family must first offer such brand to Gosling-Castle Partners and then to Castle Brands.

Castle Brands said in its prospectus that its netsales increased 82.8 percent to $17.5 million in the nine months ended December 31, 2005 from $9.5 million in the comparable prior period.

Case sales, measured in nine-litre case equivalents, increased 84,932 cases, or 63.7 percent, to 218,328 cases of which 52,045 cases related to the new GCP venture.

Castle Brands Inc. said its growth strategy for Gosling?s as well as other premium spirits including Boru vodka, Knappogue Castle Whiskey and the Pallini liqueurs includes aggressive brand development through significant investment in sales and marketing activities and the selective addition of complementary premium brands through a combination of strategic initiatives, including acquisitions, joint ventures and long-term exclusive distribution arrangements.

The company has already engaged Kelly & Co., which specialises in high-end consumer goods, to assist us in advertising Gosling?s rum. The campaign is utilising substantial billboard coverage along the east coast of the United States and selected regional print space in major national publications.

While Castle Brands expects growth for all products, the most significant increases are forecast for Boru vodka and Gosling?s rum since case sales in the imported vodka and imported rum market have grown 81.2 percent and 64.3 percent, respectively, over the five-year period from 1999 to 2004.

Continued growth is expected for the ensuing five-year period, the company said.