Brewdog Shares

masonic

Update: https://www.bbc.co.uk/news/articles/c795879x08go

Eldi_Dos

I wonder if they can still use the discount to drown their sorrows.

FrugaiMacDugal

Not looking good, have a listen here.

penners324

https://forums.moneysavingexpert.com/discussion/comment/81889254#Comment_81889254

Is there a case for misselling or even fraud?

The deal with the private equity company was not made public in the Equity for Punk information

masonic

https://forums.moneysavingexpert.com/discussion/comment/81890173#Comment_81890173

I find it odd that in general, while the FCA has clamped down on unregulated collective investment schemes being marketed to consumers, retailers seem to be able to engage in unsolicited marketing of equity crowdfunding opportunities.

I don't know about the particulars of the disclosures in this scheme, but I'll wager that very few of the investors did either.

aroominyork

It's hard to maintain a cool, hipster brand when the news is full of stories about bullying and a culture of fear. Maybe the pendulum is starting to reset and I'll soon be able to go into any pub and know that once again I can get a pint of bitter.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81890204#Comment_81890204

Interestingly a year or so ago, Brewdog introduced a normal ale, in a normal can at a normal price, and I think also in a normal 500Ml bottle. So maybe trying to appeal more to the traditional ale drinker.

It is called 'Shore Leave' and even regularly offered with a discount in the supermarkets.

jimjames

https://forums.moneysavingexpert.com/discussion/comment/81890173#Comment_81890173

Is that really the case? Or that people ticked to say they had read it but hadn't gone into the details? From what I can see the prospectus makes clear that there is 22% owned by PE and they rank above the EfP shares. If you didn't read it or understand it then you shouldn't be investing money you can't afford to lose.

Just over 22% of the issued shares of BrewDog are Preferred C Shares which carry a liquidation preference over the A Shares and B Shares meaning B Shareholders could find their entitlement to the proceeds of a liquidation or total capital return reduced or nil.

https://downloads.ctfassets.net/b0qgo9rl751g/6ikpXbSWDQeLXOcM8JGzED/fb39960c9b236ca72b69125bc774bfc2/EFP_6_prospectus.pdf

Dead_keen

The key bit in the prospectus is the very, very high 18% pa return on the C shares:

As such, in the event that the Company’s entire capital is returned to shareholders or if the Company is wound up, the C Shareholders will be entitled to a sum equal to the greater of (a) that which they would receive were all shares in the Company to rank pari passu and (b) their subscription price plus an 18% compound annual return on that subscription price for the period from issue to the point at which capital was returned. As such, B Shareholders may be subject to reduced (or nil) entitlement to liquidation or other capital proceeds in the event that the Company does not have enough capital to satisfy (or satisfy in full) the Preferred C Share liquidation preference.

Doshwaster

https://forums.moneysavingexpert.com/discussion/comment/81890173#Comment_81890173

I always thought that having marketing material for their "Equity for Punks" scheme in their pubs where people under the influence could be tempted to sign up (I almost did it myself once), is dubious at best.