Prince of Wales, a single malt, and Swn Y Mor, a blend, were both sold as Welsh whisky, but they weren't distilled in Wales. They were Scottish whiskies which had received some sort of extra treatment (allegedly filtration through a layer of herbs) to make them 'Welsh'. The company marketing them was taken to court and lost. They went bankrupt soon after and several of their directors were involved in some dodgy tax evasion scams. They had plans to distil whisky on Welsh soil in due course and the welshified Scottish stuff was supposed to keep money coming in until they could sell their own real Welsh whisky. As said, that plan didn't work out. The current Gwalia distillery, which makes Pendryn, is not a continuation of the earlier enterprise although the still that Gwalia uses was originally designed for the earlier company.
I'm very glad they got this far and I really look forward to see how Penderyn will develop over the years.