CROWDCUBE & THE FIRST EVER BREWDOG BOND
Equity for Punks IV is the world’s biggest and boldest crowdfunding scheme to date. As an alternative small company, owned by thousands of people who love craft beer, we are committed to giving that community the chance to share in our progression. Equity for Punks IV has been a huge hit so far with £8m raised since April, and we are about to take it to the next level.
Today, we are excited to announce a brand new method to invest in BrewDog with the first ever BrewDog Bond.
Equity for Punks IV shares are now also available on Crowdcube too. That means we are launching the first ever crowdfunded joint bond & equity offer in the UK.
We are psyched that the team at Crowdcube has helped us to put this in place, customising their platform for a world-first customer experience. With 198,660 registered investors and a funding success total nudging the £100m barrier, we know we are excited to be working with the very best in the business.
So, how will the BrewDog vs Crowdcube mashup work?
Equity Issue
To invest in BrewDog over Crowdcube, the rule of the land is the same as for those investing on our website; the minimum amount of investment is £95 for two shares. Those who use the Crowdcube platform will also get access to the all the same benefits as our Equity Punk shareholders, once the investment period on Crowdcube has closed (more on which later).
BrewDog Bond
This is the first time we have ever issued a bond – giving a steady, fixed rate income – for BrewDog supporters. The minimum investment in a bond is £500, and it will mature over four years, with 6.5% p.a. over that time. The interest will be paid to investors semi-annually.
Crowdcube is changing the game with its bond offerings, having raised £7.8m in bonds to date. As well as the 6.5% p.a., those taking out a BrewDog Bond will receive a discount on our online shop and in our network of bars, as well as a personalised ID card.
The BrewDog Crowdcube investment opportunity is open right now and will remain open for 45 days. The great thing about our partnership with Crowdcube is that potential investors can either opt for the equity or the bond, or both!
For further details, information and to get a Crowdcube account if you don’t already have one, head to our dedicated Crowdcube page.
We believe that the best way to develop BrewDog and further grow our business is to offer you, the people who enjoy our beers, the chance be involved in BrewDog’s future. And in offering that chance via the innovative platform developed by Crowdcube, we will continue to put the people who really care in control.
Full information on the BrewDog share offer is contained in a prospectus available at www.crowdcube.com/brewdog. Investors should only subscribe for shares on the basis of information contained in the prospectus.
For more information on the bond, please visit www.crowdcube.com/brewdog.
Investors should note that invested capital is at risk and that past performance is not necessarily a guide to future performance.
This communication is a financial promotion approved by Blears Limited (FCA no: 610217).
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Comments (21)
(as long as I havn't spent all my money on beer and transgender sex workers)
It worries me that some people may want to invest for the "wrong reasons" so all I would suggest is speak to someone who knows what they're going on about before parting with any cash. The bottom line is that the bond should be sound financial investment in the knowledge that you'll get your money back plus interest in 2019. At present there is no date for shares with only the Asset Match annual option to look forward to. But I'm in for the long term so stick with them!
Simon B - Appreciate your mixed feelings - if you want to find out what's been posted about the Crowdcube raise and get more details behind it, there is a dedicated forum on www.crowdcube.com/brewdog if you create an account (just click on either the red Equity tab or the blue Bond tabs).
However it also means that, potentially, Brewdog expands more rapidly, and that has to be a good thing.
I guess it's a natural development from a purely crowdsourcing model to one that also borrows money to expand - would be interested to know if their is any collateral (i.e. shares) being used to support this model, or whether it is simply a case of 'if we can't pay back investors: tough luck..
JIMBO J - the bond is a different type of financial product to the EFP shares. With the bond you're effectively saying "I'll lend Brewdog £500 for 4 years, and they'll pay me back £630 in 4 years". As long as Brewdog don't go bust you'll get your £500 and the interest back regardless of their financial performance.
However, you do not own any stake in Brewdog, so you:
- DO NOT get back more money if they do well
- DO NOT get to vote in the AGMs
- DO NOT get any of the rights shareholders get
They are within their rights to confer discounts etc onto you, but I don't think these will be legally binding.
With the EFP shares you own a stake in the company so you can potentially gain from the company doing well, but you might also get less out if they do poorly. You also get voting rights at the AGM. Because they're not publically listed shares you don't get all the protection of investing in larger companies - but most people are in it for a the bar and online shop discounts then ever thinking they're going to make it big.
The bond is actually guaranteed income (as in an amount, not a risk free investment) - as long as you accept the risk of maybe losing it all if the company folds - it's up to you to make that call.
Sorry guys but we cannot offer a referral code option when applying for Equity on the CrowdCube platform. So if you're looking to use your referral code it will have to be through the EFP platform.