TOPIC:

I just saw that Brew Dog is doing a share issue. I have no idea if it makes good sense financially or not, but it's surely another way to support good craft beer.
<!-- m --><a class="postlink" href="www.brewdog.com/equityforpunks">www.brewdog.com/equityforpunks

I think it's one of the smartest things they've done and is aligned well with their corporate culture.

-Don't go to the banks for money; go to craft beer drinkers.



Adam

As they are based in UK getting the discounts would be a problem

HOWEVER, are there an Irish brewers who need my investment money in exchange for divi's and discounts?

Will

"The Company proposes to issue up to 90,000 B Shares (the “New B Shares”) in order to raise gross
proceeds of up to £2,137,500 (approximately £2,091,000 net of expenses) by way of the Offer.
Upon completion of the Offer, assuming all New B Shares are subscribed for, the New B Shares will
represent approximately 8 per cent. of the Enlarged Issued Share Capital of the Company."

If they're valuing the total amount of B shares at £2,091,000 which will only make up 8% of the total share capital does this mean they have valued their company at around £26 million? Is BrewDog worth that much do you think?

&amp;quot;Con Con&amp;quot;:3tm4zjdt wrote: If they're valuing the total amount of B shares at £2,091,000 which will only make up 8% of the total share capital does this mean they have valued their company at around £26 million? [/quote:3tm4zjdt]

On the face of it, yes.

&amp;quot;Con Con&amp;quot;:3tm4zjdt wrote: Is BrewDog worth that much do you think?
[/quote:3tm4zjdt]

Could be. For a brewery founded in 2008 this is pretty impressive:

"Our beers are now available in:
• 27 different countries worldwide
• In Tesco, Sainsbury’s, Morrisons and ASDA"

Turnover £6.5m for 2011, in a brewery with a 28,000hl capacity. They are using the money to build a brewery with 500,000hl capacity, 18,000 bottles per hour and turnover capacity of £110m.

They also have a rapidly growing and successful bar business.

If they get anywhere near that they'll be worth a lot more than £26m. With their track record, I wouldn't bet against them.

Having said that I wouldn't buy them beyond the minimum £95 for a bit of fun as they are unquoted shares. i.e. there is no market for them for the foreseeable future. That would change if the company subsequently listed on the stock exchange or was acquired by another company.

I would think that all the new bars would definitely add to the valuation.