Grind, the coffee and cocktail company behind UK shops Shoreditch Grind, Soho Grind, Holborn Grind and London Grind, recently launched a mini-bond on Crowdcube to raise 750,000 for expansion and to take control of its supply chain.
Grind was established in London by coffee enthusiasts David Abrahamovitch and Kaz James with a mission to create spaces for eating, meeting and drinking. The company shared:
“Since that first day in 2011, it’s been the support of our customers that has driven us to where we are today, and we knew we had to allow them to fund our next stage of growth. Grind has always been about doing things our own way, and a little differently, and this disruptive approach to fundraising really resonated with us.
“We have identified some space in east London, about 10 minutes from Shoreditch, in which we plan to create a state of the art roastery, a central kitchen and a sixth Grind, all in one. In this new space, the biggest and most ambitious Grind yet, we will not only roast coffee, but also bake croissants, cakes and pastries to be delivered to every Grind each morning. We’ve also got a few special projects up our sleeves, and the roastery will allow us the space and the facilities to make these a reality.”
Grind is planning to open its new roastery as early as November 2015 and debut a larger shop being open in March 2016. It is also planning to open three new sites next year. The company added:
“We have recently received additional equity and debt financing, underlining investors’ trust in our management team and its ability to develop the business. As of FY2015, our outstanding debt mainly consisted of a c.£183K loan from HSBC and a £200K convertible loan maturing in 2018. Looking forward, we forecast that we will have more than sufficient cash to cover the debt service (interest payments and principal repayment) during the life of the bond.”
Abrahamovitch told the London Stock Exchange:
“Since that first day in 2011, it’s been the support fo our customers that has driven us to where we are today, and we knew we had to allow them to fund our next stage of growth. Grind has always been about doing things our own way, and a little differently, and this fresh democratic approach to fundraising really resonated with us.”
Luke Lang, co-founder of Crowdcube, added:
“Grind really has four sites in prime locations across London, so it’s great that its existing customers and advocates can be part of the company’s future plans to expand across the UK. Business from the food and beverage sector are usually very popular with our crowd of 175,000 investors, so we’re pleased to be able to offer people the opportunity to invest in the Grind Bond.”
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