The West Berkshire Brewery Plc - Convertible Loan Note (2019)
Company Name:The West Berkshire Brewery Plc - Convertible Loan Note (2019) Minimum fundraise:£0* High Share Price Bid:£0
Business Sector:Food and beverages Total Funds Bid to Date:- Low Share Price Bid:£0
Auction period:28 Oct 2019 - 29 Nov 2019 Indicative Share Price:0.00 Average Share Price Bid:£0**
*The company will accept oversubscription.
**In the event of significant oversubscription, shares will be allocated to bids at the average price and above.
NOTE: ASSET MATCH HAS NEGOTIATED AN “ASSET MATCH INVESTOR BONUS” FOR INVESTORS IN THIS TRANSACTION. SEE THE “OVERVIEW” SECTION BELOW FOR DETAILS.

Need help?
+44 (0) 207 248 2788

back

The West Berkshire Brewery Plc - Convertible Loan Note (2019)

Interested in The West Berkshire Brewery Plc - Convertible Loan Note (2019)?
Register or log in to participate, create a watchlist, or set reminder

Company info

West Berkshire Brewery Plc ("WBB") is an independent brewer situated in Yattendon, West Berkshire. Under the leadership of David Bruce, the Company built a 68,000 sq. ft. brewery equipped with an automated 50,000 HL brewery, a state-of-the-art packaging line and a 200-capacity Taproom and Kitchen.

WBB's future strategy is to focus on investing for long-term success. This will be achieved through driving growth of own-brand beers; growing the contract brewing and packaging business; and, acquiring additional freehold and leasehold pubs to expand its profile and cash-generation capability.

In the year ended 31 March 2018, the business achieved turnover of £3.3m (an increase of 28% on the prior period).

In the year ended 31 March 2019, the business achieved turnover of £6.2m (an increase of 88% on the prior period).

CONVERTIBLE LOAN NOTE

  • Proposed fundraise: Up to £1,500,100
  • Issue price: £700 per note subject to a minimum investment of £35,000 (and thereafter in increments of £7,000), subject to Board discretion to allow investments in multiples of £7,000 without applying the minimum
  • Interest: 6% per annum, payable semi-annually on 31 January and 31 July
  • Maturity: 5 years
  • Conversion price: £3.50 per share, convertible into ordinary shares in the capital of the Company
  • Transferability: Freely transferable and may become CREST eligible

Further information can be found in the Convertible Loan Note Application Terms.

Background to the convertible loan note

In the year ended 31st March 2019, the business had concentrated on investment in the brewery, its bottling and packaging business and the transition into a multi-revenue stream business. Following the installation of the latest plant and machinery, WBB turned its attention to sales, marketing and brand strategy.

The core business is growing and the investments in infrastructure and personnel are delivering returns. However, cash remains constrained as the business continues to invest for growth.

The success achieved has attracted the attention of strategic investors, and the company is in close discussions with a FTSE 250 firm. Such a partnership would result in them taking a significant minority equity stake. This alignment of interest would provide access to the national market, increase volume of sales and underwrite the cash position for the next five years.

In order to negotiate from a position of strength and avoid short-term financial challenges, WBB has decided to raise c. £1.5m via 6% loan notes. The £3.50 per share conversion price is a discount to the last equity fundraise price of £5.00 per share and has been set to attract investment swiftly.

This summary should be read in conjunction with all documentation made available on this site. Please read the supporting documentation carefully before making an investment decision.

Instructions

You are reminded that investing in early stage and unquoted businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should only be done as part of a diversified portfolio. Asset Match is targeted exclusively at investors who are sufficiently wealthy and sophisticated to understand these risks and make their own investment decisions.

Instructions

  • If you are interested in investing, please email us via dealing@assetmatch.com, confirming how much you are looking to invest (in multiples of £7,000) and we will advise on next steps depending on the size of the investment.

Key People

David

David Bruce Chairman

David’s forty-eight year entrepreneurial career in the international brewing industry and licensed trade started in 1966 when he joined Courage, Barclay & Simonds in Reading, Berkshire, as a brewery management trainee. Having learnt to brew, he became the Brewer and Sales Manager at Theakston’s Brewery in Yorkshire before co-founding not only Bruce’s Brewery and the Firkin Pubs in 1979 but also the Small Independent Brewers Association (SIBA) in 1980.

Having sold Bruce’s Brewery and the Firkin Pubs for £6.6 million before the age of forty, David became a co-founder and investor in a number of start-up breweries in Paris, Brooklyn, Denver and Seattle before returning to the UK to develop his pub interests.

In 1993, David became the largest private shareholder in Grosvenor Inns PLC and, as Development and Marketing Director, was responsible for rolling out The Slug & Lettuce chain of branded bars. In December 2000, David co-founded with Clive Watson (and became Chief Executive of) The Capital Pub Company PLC, which raised over £15 million under the Enterprise Investment Scheme, was floated on AIM in 2007 and was sold in July 2011 to Greene King for an enterprise value of £93million. This provided the original Enterprise Investment Scheme investors with a threefold return on their net of tax investment.

In November 2006, David became a founding investor in the Enterprise Investment Scheme-funded Country Food & Dining group of companies of which he is Chairman. To date, this group of companies has raised over £7.5 million which has been invested in eight farm shops, providing primarily locally-sourced produce and food and drink retailing through on-site cafés.

In October 2011, again with CliveWatson, David co-founded and became Chairman of The City Pub Company (East) PLC and The City Pub Company (West) PLC which have, between them, raised £8 million under the Enterprise Investment Scheme, and currently own seventeen free houses, including three microbreweries, between Bath and Norwich via London and Brighton.

   
Thomas

Thomas Lucas Managing Director

Tom is an ACCA qualified accountant. He joined WBB in 2008 and has a thorough understanding of all aspects of the business, having played an important role in the Company’s development over the last two years.

   
Simon

Simon Robertson-Macleod Non-Executive Director

Simon has been involved in the drinks industry for over forty years. Having worked for Martell in Cognac and Deinhard in Koblenz, he joined Scottish & Newcastle Breweries in November 1973 and stayed with them for twenty-two years, his last role being Director of Major Accounts for William Younger & Company. He joined Fuller’s in October 1995 as National Accounts Controller (Brewers and Multiple Pub Groups) and retired in 2013 having overseen a growth of 400 per cent. in sales of cask London Pride. Simon is also a non-executive director of Ossett Brewery in Yorkshire.