Brew Dog equity 'shares' bought in error

jimjames

twhincup said:

ok, so please bear with me i am in unknown territory
The site is genuine but when I thought of buying shares , i thought i was buying real shares in a company e.g. stock market style, prices go up and down etc.

https://blog.brewdog.com/blog/efp-tomorrow-extended
The value of BrewDog shares can go down as well as up and, if you invest, you might not get your money back. Past performance is not necessarily a guide to future performance. • Before making a decision, think about whether investing is right for you and don’t invest more than you can afford. 

The page certainly suggests that prices go up and down. It also says you own part of the company which is what a share is.
https://www.brewdog.com/uk//equityforpunks/tomorrow-raise/apply-for-shares

You might feel scammed but the prospectus that presumably you read is very clear:
BrewDog is an unlisted company and whilst this may change in the future, there can be no guarantee that it will become listed or on what timescale. 

If or when that does happen then your shares will be traded on a stock market and you'll be able to sell via a broker.

Surely if you were looking to sell the shares you'd have checked the current price to find out what price they were trading at and whether the offer price was a good deal compared to buying them on the market anyway? Either way you now have an investment in Brewdog and if they ever list in future you'll have shares you can sell if you want.

eskbanker

twhincup said:

Sooo many lessons learnt in so little time

One further key lesson, as well as not to invest in something you don't understand, is not to jump into something hastily, especially as a result of what you see on Facebook!

twhincup said:

I was scrolling through my facebook and stumbled across an advert for brewdog equity 'shares'.  I like their beer and thought that's cool and hastily bought 4 shares for just over £100.

ivormonee

Based on the comments above it sounds to me to be an equity stake in the company where the shares are simply held privately and not listed on a stock exchange. It is perfectly normal for some companies, especially start-ups, early stage and those funded through venture capital, to offer an equity stake then grow the company to a point where there is an "exit" which may involve a stockmarket listing or a management buyout or a sale to a venture capital or private equity outfit.

Occasionally, with some private equity, there may exist a secondary market which is an off the counter system for exchanging shares between buyers and sellers. Unless this already exists for your company, you might need to sit tight until the exit happens. Typically three to five years post final funding round, maybe more.

You've got your birthday beers in the meantime!

jimjames

twhincup said:

Sooo many lessons learnt in so little time I'm a brew dog member, not what I wanted but more fool me.  Thank you for taking the time to reply everyone

No, you are a Brewdog shareholder. You've bought 4 shares in Brewdog plc. Exactly the same as if you bought 4 shares in any other company when you would be a shareholder in that company.

ivormonee

jimjames said:

twhincup said:

Sooo many lessons learnt in so little time I'm a brew dog member, not what I wanted but more fool me.  Thank you for taking the time to reply everyone

No, you are a Brewdog shareholder. You've bought 4 shares in Brewdog plc. Exactly the same as if you bought 4 shares in any other company when you would be a shareholder in that company.

This is exactly right; you are a shareholder and the shares that you hold confer some shareholder perks (most companies do not offer perks but some do and it's less uncommon for privately funded companies, such as this, to offer them to entice people to invest).

You are not "a Brew Dog member" - if there is some type of membership (again, this is something that you see but very rarely) then you haven't joined - you've just bought shares ... with perks. And as per above, at some point, there may (usually is ... eventually!) be an exit at which point your shares will either be listed on the stock market or you will be offered a payment for them if it's a buyout or private equity or venture capital firm making the offer for the entire equity (which would be subject to shareholder approval where you would have to vote if you were in favour or not!).

Given that you like the brand I wouldn't worry if I were you; hold on to your shares, they are real, and one day, if Brew Dog do well, you could make a nice little (or big) profit!

TheAble

[Deleted User] said:

Hi,

from Brewdog perks:

Lifetime discount in our bars and in our online shop (1-19 shares = 5%, 20+ shares = 10%)

A free beer on your birthday every year

So it's a bit cheaper but still really expensive 😄

Doshwaster

I've occasionally considered buying some Brew Dig shares but that is usually when I've been in one of their pubs drinking their beer. I've always gone off the idea when I've sobered up.

Personally, I'm not convinced that they are a good investment. They do some good quality and interesting beers but I get the feeling that that have grown far too quickly when every pub and supermarket stocks Punk IPA they are hardly the revolutionary startup brewery that they claim to be. 

[Deleted User]

Nah they are not proper shares. They are just feel good tokens to make you feel all warm and fuzzy inside that you now have some sort of special link with BrewDog. As already said above, all they entitle you do is some discounts and a free beer.

Join your local CIU club, A: It's cheaper and B: I get £20 worth of pint tickets a year for turning up at the AGM.

moneysavinghero

TheAble said:

[Deleted User] said:

Hi,

from Brewdog perks:

Lifetime discount in our bars and in our online shop (1-19 shares = 5%, 20+ shares = 10%)

A free beer on your birthday every year

So it's a bit cheaper but still really expensive 😄

From the prospectus:

• The discounts and other benefits to which Investors are entitled may be changed (including being removed or replaced) at the discretion of the Company from time to time.

So it might not be cheaper for ever. Drink as much as you can while you can still get the discounts.

steampowered

The company offered to sell you shares. You bought some shares. You are now a shareholder.

I don't really understand how you could do that by "mistake"? It's not like you fell over in the shower and hit the "buy button"by accident.

You are a big boy (or girl!) and can make your own decisions!

You might make a profit on the shares if BrewDog is sold or goes for an IPO, so treat it as an investment.