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.
You might want to check your math there...
ReplyDeletePoor investors beer will be diluted to alcohol free, at 3.5b cap someone's drinking the hard stuff.
ReplyDeletethe 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.
ReplyDeleteMy mistake - too rushed to bother to read the prospectus. Apologies - it's been corrected.
DeleteI wonder how one would sell shares in the US subsidiary in the event that Brewdog went public?
ReplyDeleteGood question.
DeleteHey 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.
ReplyDeleteps 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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