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Wed 8th Apr 2015 - Camden Town reduces valuation by £25m
Camden Town reduces valuation by £25m: Camden Town Brewery has reduced its eye-watering £75m valuation on crowdfunding platform Crowdcube to £50m after an unnamed set of investors began talks to buy a 20% stake for £10m. Previously, the company had valued itself at £75m despite turnover currently standing at just £9m - it sought to raise £1.5m for a 2% stake, which it achieved several weeks ago. This evening, in a surprise move, the company radically adjusted it own valuation after the approach, reducing is value by £25m, which means the 2061 investors who have far pledged £2,214,920 will now receive 4.37% of its equity. Founder Jasper Cuppaidge said: “Although just over £2m raised in 45 days is an eye-watering achievement, things don’t just stop there. Recently we were approached by a small group of investors who wanted to look at other ways they could back the brewery. Since then we have had quite a few get-togethers and they’ve been taking a close look at us to see how we operate. To cut a long story short, we’re very happy to announce that we’ve just agreed to preliminary terms and, subject to due diligence, they will be investing up to £10m for 20% of the shares in the business, the majority of which will be used to fund the brewery and other expansion project requirements. We have now signed heads of terms for the proposed investment. This does not mean that the investment is finalised, but we do expect the programme of due diligence to be wrapped up within the next eight to ten weeks. Now, this is great news for our Crowdcube investors because, to bring in this new investment, we’ve agreed to adjust the post-money value of our business to £50m (down from £75m). So to anyone who’s invested via Crowdcube, this mean that your stake just got a ‘Hells’ of a lot bigger. Crowdcube has accepted our request to extend the closing date to midnight 21 April to give (investors) the time to understand what we have been comfortable to agree to with our new proposed partners, and to facilitate their investment.” 


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