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Brewdog WINS!!

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They said on saturday that people who have invested through the crowdfunding scheme will be able to sell 15% of their equity based on the valuation given during their partial sellout to corporate america. If you got in during the first or second phase your shares are worth 26 times more than they were when you bought them. I got in during phase 3 so mine are worth 6 times what I paid for them so I'll still be able to get out what I put in plus a little bit extra, which is about as good as I thought it'd ever get.

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What's this 'shares with restrictions' nonsense? I've never understood the equity thing they do. Is there a legal name for such an implementation? Does it have documentation?

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It's not a publicly traded company so there's no mechanism in place for routine buying/selling of the shares. The crowdfunding for equity thing was just a small scale version of what they've done with the VC folk in America where a portion of the company is bought based on a particular valuation. In the early case it was a portion being bought up by a thousand people (not an accurate number) rather than one person/company but it's the same principle.

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If it's not a public company you're either buying a percentage ownership of the company (in which case you'd be owed a percentage of revenue) or you're buying share options. That's the part I'm not understanding - in the latter case you would be free to exercise your options whenever you want based on the valuation given when you bought vs the valuation now. 

If they go public do you as a 'share holder' have a buy price for your options? E.g. You have 100 options at a 100 million valuation which makes your options worth lets say 10 pounds. The company goes public at a 1 billion valuation, can you convert your options for 10k and sell them as shares for 1 million? 

Whenever anyone describes the brewdog share thing it just sounds like a membership badge or something.

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18 minutes ago, ca_gere said:

 

Whenever anyone describes the brewdog share thing it just sounds like a membership badge or something.

That's how its always come across to me.

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2 minutes ago, James Broonbreed said:

Right, so I've got 4 B shares, how many can I sell and how do I go about this? I'm on a work network for two weeks so a lot of sites are restricted making fact finding pretty difficult.

 

 

You can sell 60% of one share. There's supposed to be an email out to shareholders this week detailing the process.

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If you bought in EFPII your four shares were split by 5 for EFP4 then again by 10 now.  So your 4 shares if bought at EFPII will now be 200.  If you have access to Compushare you can login and see the total amount, I have 500 now, and I've sold half of my shares twice.

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On 4/12/2017 at 4:42 PM, James Broonbreed said:

Right, so I've got 4 B shares, how many can I sell and how do I go about this? I'm on a work network for two weeks so a lot of sites are restricted making fact finding pretty difficult.

 

 

There's a £12.50 fee for selling your shares - so if you've got 40 and sell 15% you'll effectively lose one share to someone else.

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