BrewDog Crowd Funding One Last Time

atari_st

I see that BrewDog are crowd funding one last time to fund further expansion. Reading their prospectus they made a £8m loss between Dec 2019 and June 2020. Given a second UK lockdown in some form or another is likely and the struggling economy do people see this as a good investment? Previous news articles suggest a flotation was targeted for 2020 however cannot see this in the near future. Thoughts? 

DireEmblem

It all depends on your point of view.  If you like Brewdog juice, then the minimum 2 share investment of £50 could be worthwhile.  You get an online discount, discount in their juice shops, and a free juice on your birthday.

Any more shares than that, and you can get them cheaper.  I think there’s a website called brewdog shares that helps to facilitate a private sale of shares.  They have offered to help broker sales from £15 a share all the way down to £10.75 a share if you buy a lot.

Its difficult to say really as they’re still relatively small in comparison to other players out there.  I think last time I looked that to get your £25 back, we would need the company to be valued at 2bn.  If I were to pick a number, I would approximate their value hovering above the 1bn mark.

kinger101

You do get some discounts as a shareholder, but most supermarkets sell their beer cheaper than the online shop anyway.

I personally don't think the company will ever return to profit.  

doe808

Ddidnt some US outfit take a holding a while back?

bowlhead99

doe808 said:

Ddidnt some US outfit take a holding a while back?

Yes, a US private equity fund owns 22% since 2017. They gave a special class of preference shares giving them the first slice of any exit proceeds at an 18% compounding return on their purchase price, so if the value doesn't grow much from its current ~ £2bn valuation over the next few years, the ordinary shareholders (including people investing now) would get back less than the current £25 per share.