I invested some money in B shares via Crowdcube. I’d now like to sell them and wonder if this is possible. If so, how do I do it?
No you can’t simple answer
Simply put, no.
You - and all the other investors - won’t have the option to sell until Chip reaches a position where it’s able to float itself on the Stock Market.
Ok, thank you for the replies. That’s really helpful.
Keep an eye on Crowdcube/Seeders for a secondary market. Who knows what might happen.
Just to reiterate from Team Chip, everyone is on the money - you can’t sell your shares at the moment, but we’ll let you when when that’s possible!
Is it possible to convert b investment shares to the A ordinary shares? Also, how do I find out how many A shares I have (I bought some in Sept but cannot see a certificate for the purchase yet?)
Simply no you can’t convert b to a and the a shares from sept haven’t been issued yet hence no certificate
I’d probably buy them from you privately, if you sort out the hassle with Capdesk. Depends how many you are talking about and what you’re expecting for them.
I’ve seen private trading of unlisted equity occur on other companies before. Most notably Brewdog.
Brewdog have always stated that they’ll have an annual trading day to allow shareholders to trade amongst themselves privately… but it almost ALWAYS failed and had huge complaints… and they’ve failed to do it for years…
So shareholders figured out how to do it themselves, there is always a fee and commission to pay, but it can be done.
Its a bit late in the day to buy BD shares, but if you like their beer, then the discounts associated with being a shareholder are decent. These guys have been offering shares in bulk for about £15 each recently.
A secondary market place has been mooted on seedrs and crowdcube. Not sure if I’ve seen one materialise, but its interesting you can do it off book through cap desk. Good to see if/what interest there is and the current value people place on shares.
I don’t want to tout brewdog shares at all… frankly i’m bored to tears with them constantly doing equity raises and constantly diluting the shareholders without even having a discussion with them about any real exit opportunity… (and whilst i COMPLETELY understand the need to be a renewable or sustainable business in today’s snowflake world.) they created a “unicorn fund” which took 10% of their funds annually and gave it to their staff as an annual bonus… (i got behind this idea… as i thought it incentivised the staff to feel like business owners and therefore ALWAYS work harder)…
however the following year they then created a similar fund where they took a further 10% of all profits and decided to give it away to charity each year…Again a noble deed indeed.
No one is taking any of that away from them…
However, they put both of those actions it into the rules of the company… so now brewdog has a really steep challenge to provide any money for it’s shareholders outside of capital growth as 20% of thier money is now cut off each year.
And that’s a pretty big ask for a company which last time i checked, was over £2 billion in value already… and just suffered a HUGE loss during the pandemic after shutting all of it’s bars.
They’ve categorically stated numerous times that they will not pay dividends as they are re-investing all money into growth anyways.
As i say, Brewdog previously promised that each year for 1 day only, they would open a trading day to allow people to offload shares if they wanted.
I’ve yet to ever see it being a real success, and they’ve just ignored it for a few years now…
That lad Neil Fletcher you’ve mentioned there. He’s the only one i’ve seen who’s really done anything about it. Well done to him to be fair.
I once saw someone go a bit ballistic at brewdog on their forum. It appeared like Brewdog essentially wrapped a guy in red tape, and because of that, he was unable to sell his shares after holding them for about 6 years. This was his 3rd or 4th year in a row trying to sell them on that one day…
And he caused such a stir that James Watt just came on the forum and bought them himself off the guy to shut him up.
Was just the plaster over a wound. Didn’t really solve the problem that Brewdog have shareholders that have been invested for coming up to a decade now, and each year they flagrantly dilute further and ask people to get excited about it without any visible reason for doing so.
And let’s not get started on the HUGE debt they have with that American firm TSG… They have guaranteed rates of return in that agreement! So if they don’t pay back that £100 million next year it’s going to get away from them and they’ll struggle to keep up. Unlike Chip,… Brewdog have begun mixing VC investment and private equity through crowdfunding without any apparent plan. (or at least not one they are sharing with thier 100’s of thousands of shareholders.
Luckily, i got in around 2014, so I’ve nabbed almost 1300 shares of theirs. But note, you said they were selling for £15 on that guys site? Brewdog were selling them for £25.15!!
So there people are selling them at a loss!! It makes you wonder about the reality of the value doesn’t it?
Are my shares worth £32,695.00 or are they worth £19,500.00. Because over 10 grands worth of difference isn’t exactly pocket change. I’d hate to think of the pressure James must be ignoring to silence the shareholders in his head.
Sorry, you got me started on a bit of a rant…
TLDR’ - for Chip, there is no additional secondary market. Shares have always either been direct through them, or through crowdcube. And as far as i’m aware all our shares are held on the register at Capdesk. So because the shares are held there, we could probably privately move them amongst ourselves so long as chip, capdesk and the owners all agree. (for example… if someone was to die, you could notify them and get the shares moved through the executory of their estate)…
the same principle applies regardless if Chip has floated or had an exit event yet.
I see your view on Brewdog, but there’s more value in buying two shares than there is 200 at the £25 valuation particularly at their later stages.
I guess with Chip, we got socks instead of a free beer for your birthday, and similar investor grumbles, Chip has a long way to go to meet promises made to investors but we will see. If we can get a VC to join and help give some good direction then we have a chance, if not we are dead in the water. I would happily sell out to give a VC better terms.
I think this will be the difference between Brewdog and chip.
There will be some planning and possible choice in the future.
Hey - I mean Brewdog are undoubtably a large and successful company. And I know both the owners well, and live just down the road from their flagship pub (Dogtap) and their brewery. But… I just feel Chip has some great leadership with Sharon and Simon… and Simon’s recently commissioned his team of lieutenants. And they all are young dynamic keen beans.
No one is sitting on their hands over there. We know that. And they aren’t flogging a dead fish either.
They’ve got something… revenue is coming in. They have a user base, they have a roadmap…
The differences between “successful” companies and Chip in many ways is that Simon has taken a slower more methodical approach to ensure his business is sustainable.
Which will provide better returns in the long run.
Obviously we can’t cash in until sharesbare floated… but what does that mean for those that have had to make UC claims? How is the investment represented for book balancing purposes? Is it initial investment value, current theoretical value, or just £0 because its not currently tangible money?
Crowdcube are shortly launching Cubex where you will be able to buy and sell your Chip shares. They match buyers and sellers and do all the paperwork.