You really couldnt make this up - 7 Bothers Brewery by its own admission is selling its equity with misleading financial forecasts, verified by Crowdcube.
We wrote only days ago about how The Hebridean Food Co had financials for the past year that were not accurate. Now we have a similar situation here.
In the pitch forum, 7BB admit that the financials for 2016 which run to October 2016, are not going to be fulfilled because half of the turnover was supposed to be via a bar which hasnt opened and will not open before September 2016.
So half of the £464k revenues have already vanished - yet the pitch says they are still good to go. What the hell do Crowdcube do on a daily basis? This took us about 3 minutes to ascertain. If the question had not been asked in the forum, are we to believe that this information would have remained unknown?
We all need to have better reporting on these issues. It makes a massive difference that a very small brewery trying to claim to be the next Camden, can take its annual turnover from £50k (actual 2014/15) to a predicted £450k in 12 months. A very substantial leap on a marketing budget of £6k - yup £6,000. Now we learn that this £450k will only be £225-£250k - meaning that the EBITDA for the year 2015/16 instead of being £(60k) is likely to be nearer £(200k +) - thereby wiping out the money they have almost successfully raised on Crowdcube.
Are you all mad?
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