Originally started out in the back of a van by two guys and dog, BrewDog is now recognized globally for its high-quality product and today employs over 350 people, exports beer to over 50 countries and operates over 32 branded bars with more to come.
Operating profits came in at £3.9 million in 2014. BrewDog announced it was raising capital directly online this past April. The 4th Equity for Punks target raise is for a solid £25 million. The offer quickly raised £5 million within the first 20 days but since then funding has slowed. According to BrewDog funding now stands at around £8 million
BrewDog’s new crowdfunding campaign was listed on Crowdcube last and is considered the “first” combined debt and equity capital raise. Investors may purchase two shares of BrewDog stock for £95 or purchase a bond for £500 with a fixed 6.5% annual rate of return.
“Equity for Punks is all about shortening the distance between us and the people who drink our beer, and enabling us to keep putting passion in people’s beer glasses without resorting to begging funding from big monolithic banks who don’t care about the beer. £10M is phenomenal. But we’re not stopping there.”
Notably, this is not the first time BrewDog has offered equity online and the company is, in fact, a trailblazer in the equity crowdfunding space.
Funds will go towards the following:
- Build a Bigger Brewery: £3 Million
- Develop Canned Beer Range: £0.5 Million
- Open a Craft Beer-Focused Hotel: £1.5 Million
- Establish a USA-Based Brewing Operation: £3 Million
- Develop Abstrakt Beer Range: £1.5 Million
- Grow Internation Bar Division: £2 Million
- Open New UK Bars: £7 Million
- Invest in Environmental Technologies: £2 Million
- Establish a UK Import and Distribution Arm: £1 Million
- Launch New Ice-Distilled Beer “Hop Shot”: £1 Million
- Launch Craft Distillery: £1 Million
- Build a Sour Beer Facility: £1.5 Million
“We are confident about the valuation for our company,” he said. “We had people complaining about the valuation in Equity for Punks I, II and III, but we have justified that.”
The Crowdcube campaign is set to close at the beginning of November.
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