McGuigan and Tempus Two owner Australian Vintage has been forced into a deeply discounted capital raising of $19.9 million to try to shore up its creaking balance sheet and still wants to pursue a merger with other players.

The capital raising, which is not being underwritten, is priced at 20¢ a share, a 42 per cent discount to the last close of 34.5¢ on May 22 before the company went into a trading halt, which was extended into a suspension of its shares that is due to end on June 13.