Wednesday, 6 June 2018

Brewdog relaunches its US fundraising



Just when you thought it was safe to go out.......... Brewdog launch another $10m punk equity round in the USA.

Each one of the 800,000 new shares in the US subsidiary, is going for $50.  As you can see from the comments we didnt do a very job guessing the valuation. Its a lot. The now rather tattered fat cats were once again thrown from a helicopter over the City. I do hope the reaction to the funding is more imaginative.

The one crucial issue with BD is cash - they have stuck themselves a very long way out there - sort of a Napoleonic advance on steroids. There can be no retreat if the cash runs dry.

Should be fun to watch.

8 comments:

  1. You might want to check your math there...

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  2. Poor investors beer will be diluted to alcohol free, at 3.5b cap someone's drinking the hard stuff.

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  3. the offering does not value BD at $3.5bn, it values the US subsidiary at $382m. The ongoing UK raise, which offers shares in the group rather than the US subsidiary, values the group at £1.7bn. Not saying those valuations are realistic but they are the facts. I think you have looked at outstanding shares in Brewdog plc and multiplied by $50, which is wrong.

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    1. My mistake - too rushed to bother to read the prospectus. Apologies - it's been corrected.

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  4. I wonder how one would sell shares in the US subsidiary in the event that Brewdog went public?

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  5. Hey anon - we have told you before that if you cant post anything that adds to the debate then please (kindly) dont post. You waste your time as they simply get deleted.

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    1. ps your assertion that BD are a great company is hardly news. But if they run out of cash they will be a bust great company. They are raising more funding in the USA because their last pitch there fell well short of target - they need more cash. Hence the post above.

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