"Beware, consumer-investors, the promises of companies that claim to be upending the system or casting off the shackles of the old order. You may think you're getting in on the ground floor of a business venture that cares more about average people than some soulless corporation, only to find out that your favorite "renegade" businessman actually just dreams of ... cashing in by building a soulless corporation."
"The most likely answer is simply a resounding "no." Thanks to BrewDog selling a portion of the company to private equity (TSG Consumer Partners) back in 2017, and thanks to the fact that TSG was given "preference shares" that entitle it to the first profits from any sale, the company's rank and file investors now seem quite likely to end up with nothing at all for their supposed equity."
BrewDog sold a stake to private-equity firm TSG Consumer Partners in 2017, granting TSG preference shares that entitle it to the first profits from any sale. About 220,000 crowdfunding investors who bought "shares" of "equity" now face a high probability of receiving little or nothing from a sale because preference-shareholders have payout priority. The company's valuation fell substantially since the COVID-19 pandemic amid a wider malaise in the craft-beer market. BrewDog announced multiple bar closures in the U.K. and U.S. and the permanent closure of its Aberdeen distillery, and a pending sale could split the company into smaller pieces.
Read at Jezebel
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