Page 30 - Brewdog Teaching Notes

Each round of EFP resulted in a lower and lower share value

on sale but they did attract shareholder value via discounts
on beer and an AGM that takes the form of a music festival

rather than shareholder meeting. Fine if the purchase is

viewed as support for the company and its community but

not so much if the purchase is an investment.

ESP Tomorrow - IPO

There can be little doubt that Watt and Mackie have used

the breadth of their brand and loyal community to avoid

using crowdfunding companies such as Crowdcube and

Seeders and their associated fees by using their own

website? Or being more sceptical, is it to simply to bypass

these platforms’ compliance and diligence controls they

have in place to protect and inform their investors?

Some obfuscation has occurred through the use of the

BrewDog website for valuation of the company. Simply put it

is difficult to find within the ESP Tomorrow investment
prospectus, a straightforward valuation figure. However,

although the document does not give a valuation figure it

does provide the required information to work it out.

Assume:

BrewDog raises it hoped for £50m this represents 2.7% of

the company or (50,000,000 x 100 / 2.7 = 1,851,851,851) a
valuation of around £1.85 billion.

Any fraction of the £50m invested as an individual

crowdfunder will receive a proportional fraction of that 2.5%