CROWDCUBE & THE FIRST EVER BREWDOG BOND

Introducing a new way to invest in BrewDog

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)

AnselmoCZ 18.09.2015 @ 2:08pm
Hey, what about ability of BrewDog Bonds for other European countries?
Ricky G 03.09.2015 @ 1:18pm
I'll be doing this nearer the end of the month!
(as long as I havn't spent all my money on beer and transgender sex workers)
ARobertson 03.09.2015 @ 10:23am
Some valid points been raised here and some good answers. Brewdog are issuing a bond which has a lifetime of 4 years. This is similar to many other organisations and companies (such as Wasps Rugby Union Football Club) who recently was over-subscribed with their bond offer. A bond is a loan to a company with the promise of interest on top of your original outlay (as long as the company doesn't go bust). £500 over 4 years will give you back £630 but remember that the 6.5& interest rate is taxable (gross interest) so you will also have to pay your nominal rate of tax (probably 20%). So the £130 on your initial £500 investment will actually be £104 net (after tax). The bond is being issued at the same time as the EFP4 shares to enable the company to raise more cash and invest the proceeds quicker. The new part of the brewery is going up at a helluva rate and this is having to be paid for, however remember this is all for long-term investment. James and Martin have said previously that the medium to long term goal of Brewdog is to achieve a listing on the FTSE 250 (index of the biggest 250 companies listed in the UK by value). This is when original and follow-on shareholders will be able to trade their shares on the open market and capital gains can be realised. Brewdog shares at present are class B shares and unfortunately we have to wait until the board decide to go for a stock market listing.
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!
bertrand 02.09.2015 @ 5:52pm
A translation in french for understand all of equity punks 4 and crowdcube ...
Caley 02.09.2015 @ 4:53pm
Keep on doing what you're doing guys! :D
BrewDog Rich 02.09.2015 @ 4:11pm
Jimbo J, Mike, Nelson M, Steven - We have always said that we would re-invest profits to help grow the company, and your investment, long-term. For those who wish to trade shares, we have an annual share trading platform - the next one of which is due to be held within six months of the close of Equity for Punks IV (Stewartypie, I think that answers your question). The Bond is a completely different type of investment - one that we have implemented following interest from plenty of people - running in tandem to further project us towards our target of £25m.

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).
Nixon 02.09.2015 @ 3:33pm
Good to see another way to invest, I've chipped in on other Crowd Cube pitches before - it is a good way to help people along with their business
Steven 02.09.2015 @ 2:32pm
So what about former investors? Are we likely to see anything like a 6.5% p.a return on EFP???
Nelson M 02.09.2015 @ 12:58pm
I hear you, Jimbo. Why not dividends on the longer invested shares instead of committing to paying out on a bond?
Simon B 02.09.2015 @ 12:07pm
Mixed feelings - As an investor in EFP issues 2,3 &4 I wonder how borrowing at 6.5% will affect my investment, as opposed to raising money by selling equity in the business. It will, naturally, mean I have to wait longer for my investment to pay a return.

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..
Mike 01.09.2015 @ 6:12pm
As jimbo j has already asked - what is happening with current efp investors? It seems a bit harsh new investors using crowdcube getting a promise of a 6.5% return every year for 5 years. I joined in efp II - to my knowledge no one knows the value of their return!!
Stewartypie 01.09.2015 @ 4:33pm
Good point regards the previous EFP issues, not being able to trade makes me nervous regarding any further commitment. At least there is an end in sight for the bonds, i.e. 5 years.
Jamie C 01.09.2015 @ 4:14pm
** disclaimer - I am not a lawyer of finance person - below is my personal understanding **

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.
Jimbo J 01.09.2015 @ 12:58pm
So what about former investors? Are we likely to see anything like a 6.5% p.a return on EFP, how are they getting on?
BrewDog Johnny 01.09.2015 @ 11:31am
Hey Martyn, hey Steve D

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.
Steve D 01.09.2015 @ 9:44am
Great news...hope you can also still refer folks?
ARobertson 01.09.2015 @ 9:34am
When I first read the e-mail I thought it was something to do with the new 007 film but then realised it was a financial bond and not James Bond! Having invested in both EFPs 1 & 2 but nothing since I am potentially interested in the bond as the interest rate is attractive plus diversity is a good thing for your portfolio. I'm in this game for a good financial return as well as drinking quality beer!
Martyn 01.09.2015 @ 9:24am
Is there a way to enter a referral number via the Crowdcube site? I can't seem to find one.
BeerLover 01.09.2015 @ 9:24am
Excellent stuff!
Toffee28 01.09.2015 @ 9:23am
Oh nice, can't wait to get involed!
Brian L 01.09.2015 @ 9:22am
This is so cool! Nice work guys!