BrewDog set to raise £25m for expansion through crowdfunding

James Watt Martin Dickie BrewDog

Scottish brewer BrewDog has announced it plans to raise £25million through its latest crowdfunding scheme to fund expansion, including new bars and a distillation plant.

This round of its Equity for Punks investment scheme will see 526,316 shares in the business being made available for anyone to buy for a minimum investment of £95 for two shares.

It is more than five times the £4.25million that BrewDog raised in less than six months through Equity for Punks in 2013.

The capital raised from investors all over the globe will be used to fund an expansion of the BrewDog brewery and its growing international bar division as well as launch new projects such as a craft beer hotel, a custom sour beer facility and a distillation plant.

As well as owning part of the business, Equity for Punks shareholders are given benefits including a discount at BrewDog’s bars globally and at and an invitation to the brewery’s AGM.

James Watt, who founded BrewDog with Martin Dickie (pictured), said: “The craft beer revolution has succeeded in redefining beer and Equity for Punks is redefining business finance. By making profit king, the financial institutions of the City gave rise to the bastardisation and commoditisation of beer.

“To grow BrewDog whilst being true to our values, we have had to build a whole new generation of business model. Equity for Punks puts the people who really care about our beer in control and keeps the passion and integrity in people’s beer glasses.

“We already have 14,568 passionate shareholders and with this new round we invite tens of thousands more to join the craft beer revolution and help us change the world forever.”

Bypassing banks and brokers, the Equity for Punks scheme is accredited by the UK Listing Authority. It allows anyone to buy shares at £47.50 each, with a minimum investment of two shares, at or in any of BrewDog’s bars around the world.

Founded in 2007, BrewDog exports its beers to 55 countries and, since 2010, has built up an international estate of 27 bars, with more planned this year for Brighton, Norwich, Leicester, Berlin and Rome.

With the funds raised, BrewDog plans to build a new 300-hectolitre brewhouse to operate in tandem with its existing 100-hectolitre brewhouse in Ellon, Aberdeenshire. The brewery will also invest up to £2million into environmental technologies.

The brewery would also use the money raised through the share sale to open new bars in the UK, giving priority to opening new bars in locations with a high number of Equity for Punks investors.

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