Inital share offering aims to raise £3.85m through minimum £50,000 investment offering
Isle of Arran Brewery is to launch the first of three planned share offerings in October.
The independent brewer said the first share offer, which will be open to high net worth individuals for a minimum £50,000 investment, will aim to raise £3.85 million.
Gerald Michaluk, chief executive, said the first-round share offer is at the limit of Euro 5 million, which can be raised though cloud sourced funding routes.
He said: “The process is well under way now, with the plc now formed, all debt has been converted to equity and we're scheduling October to launch.
“The initial offer will be aimed at high net worth individuals, and the minimum investment in the first round will be in the region of £50,000.
“Then sometime around Christmas we will launch the so-called cloud flotation, which will be open to investors for a minimum investment of £200.”
Isle of Arran Brewery first announced its plans to sell shares in the business in June, in a move inspired by fellow brewer BrewDog's 'equity for punks' scheme.
The first share offer will go live in October, and has been put together by the same lawyers and accountants who advised BrewDog.
The wider plan is to raise £10 million over the next three years to fund expansion of the brewery and move into new markets internationally.
Isle of Arran Brewery, which makes Arran Ale, Blond, Red Squirrel, Sunset and Milestone beers, has already identified a preferred new site on Arran for a new brewery as well as plans to move bottling to a mainland facility.
Michaluk said because the existing brewery is now approaching its production capacity in qualifying for 50 per cent duty relief through the Small Breweries Relief scheme, capacity will have to increased enough to make economic sense.
Isle of Arran Brewery will reach the limit of 5,000 hectolitres (one hectolitre = 100 litres) to qualify for duty relief at the mid-point of 2013, based on current sales.
The present capacity of the exiting facility is 16,000 hectolitres, based on the Arran plant running a continuous three-shift pattern.
Michaluk said if the fundraising is successful it will fund development of a new brewing facility which would increase production 10-fold to 160,000 hectolitres.
Isle of Arran Brewery is also about to launch into 10 overseas markets to countries “within Europe” as well as the United States in the coming months, as well as expanding its reach in the UK through supply deals to supermarkets.
The brewery already supplies the likes of Tesco, Sainsbury's and Co-op.
Michaluk acquired the Isle of Arran Brewery based at Cladach, near Brodick, out of administration in June 2008.
The company currently employs 10 people and last year posted sales of £720,000 and made pre-tax profits of around £60,000 on sales of around 500,000 bottles of beer annually.