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Whisky Hammer Auction Investment opportunity?

lincolnimp
Connoisseur Connoisseur
Posted on 09-10-2019 at 17:17 pm

The email was titled - Fancy owning a part of Whisky Hammer?

Your thoughts please, I believe all members who are registered for Whisky hammer will have got this email, interesting  concept to say the least?

Is this a good thing or not?

There was scant information on projected returns, that is what stuck me.

LI


As follows:-

Just over 3 and half years ago we were making final preparations with our web developers for our first ever whisky auction which launched in March 2016 - an incredibly exciting and nerve-racking time that both of us remember vividly! 

 

We started the business given our existing passion for whisky, and our ever-growing collections at the time led to us both developing an expertise in the whisky auction market and associated valuation metrics. 

 

Roll forward to now - Whisky Hammer has grown to become one of the UK's leading whisky auction websites, auctioning around 1,400 lots per month to our global market place of over 13,000 whisky enthusiasts, managed by a crack team of 5 legends (and us!). 

 

Despite what many people think, growing a business such as Whisky Hammer in a competitive landscape is not as easy as it looks!  But with the help of our members we have been able to build upon constant feedback and learning to continuously develop - we have never taken our foot off the gas in striving to be the best, and we will continue to pursue this mission going forward.   

 

We want to personally thank you, and all of our members, for your support over the years.   

 

OK get to the point... 

 

Today, we are delighted to announce the next phase in our growth journey - we feel the moment is right to commit to build a new premises for Whisky Hammer to allow the auction business to continue to develop, alongside launching our plans for Still Spirit Ltd - a whisky retail business and bespoke tasting room to strategically run alongside Whisky Hammer. 

 

The growth to date has been great, but we are just getting started... 

 

...and that's why we want to invite our members to become shareholders in our business, quite simply because you are the reason that Whisky Hammer has reached this pivotal point. 

 

Next week, we're opening Whisky Hammer up for investment on the crowdfunding platform Crowdcube, enabling you to obtain equity in our company, share in its success and benefit as it grows. 

  

We could keep things as they are, but we want to push the boundaries.  We want to offer a more all-round experience for our members, alongside bringing a greater volume of hard to find bottles to our auctions.  Our current auction size is constrained by premises space so a bigger premises is essential to achieving our goals. 

 

We could finance our plans using traditional straight forward bank loans - but the idea of developing a community of whisky-passionate shareholders that already share our love for 'all things whisky', and who can continue to help our business strive, is much more appealing. 

 

The Crowdcube investment will give us the rocket fuel we need to take our business to the next level and we would be delighted if you, our founding members, could join that journey. 

 

Interested? Intrigued? Or just a little bit curious?  Watch our pitch video below for more information. 

 https://vimeo.com/362242729?utm_source=Whisky+Hammer+Subscribed&utm_campaign=85bdd7a7d8-November_Auction_Now_Live_9_16_2016_COPY_02&utm_medium=email&utm_term=0_9aceecb985-85bdd7a7d8-97374705&mc_cid=85bdd7a7d8&mc_eid=0005518ae0

    

The official Crowdcube campaign will go live to the public in the coming weeks, however before this time we want to give you and our other founding members the exclusive 'first chance' opportunity to buy shares on Crowdcube ahead of the public launch.   

 

There will only be a limited number of shares on sale, so it makes sense to offer these to you guys first!  Keep an eye on your inbox as this exclusive 'private launch' will open on Monday (14th October).  To be sure that we e-mail you first, you can request to be an 'early-bird' investor by adding your name to our mailing list using the following button: 

  

Register Here For An 'Early-Bird' Invite 

 

Investment will start as little as £10 with various perks along the way for certain milestones - more information on this will follow when the campaign goes live. 

 

Importantly, we have obtained pre-approval from HMRC to confirm our shares will be eligible for EIS tax relief, which will permit certain UK investors to receive up to 30% tax relief on the investment - another reason why we want to offer this opportunity to our existing members first! 

 

If you have any questions - please drop us a line at investors@whiskyhammer.co.uk. 

 

Thanks, as ever, for your support. 

 

Slàinte Mhath 

 

Daniel & Craig Milne 

(Brothers and Co-Founders) 

   

PS - investments of this nature carry risks to your capital as well as potential rewards.  Approved as financial promotion by Crowdcube Capital which is authorised and regulated by the Financial Conduct Authority (no. 650205).

  Edited on 09-10-2019 at 17:27 pm
mrgood
Expert Junior Junior Expert
Posted on 09-10-2019 at 18:22 pm

I would tread carefully and take it with a healthy dose of skepticism.

Why are they doing it this way instead of a more official public offering?  My guess would be because of regulations.  Publicly listed companies are required by law to regularly disclose proper full financials to shareholders.  Will this be the case here?   It's also one reason to not go to a bank.   Banks would hold their feet to the fire.  

The way they're doing it is clever because they get free investment capital but don't really have to answer to anyone at all.  Is there anything to stop these guys from folding up shop and running to the Caymans with the investment capital?  That would be the worst case scenario, maybe highly unlikely, but possible.

"There was scant information on projected returns".  That would be a big red flag for me.   Though at the same time, if they made ludicrous guarantees of huge returns, that would be a red flag as well.

For anyone considering it, make sure to first read the crowd sourcing website disclaimer very carefully.

https://www.crowdcube.com/explore/risk-warning

VaryingViewpoint
Expert Senior Senior Expert
Posted on 09-10-2019 at 18:56 pm

Why would anyone want to invest in such a venture? Makes zero sense to me if you are already into drinking and collecting whisky. If you have $100-$10,000 just kicking around just buy a bottle, or two, or three and that way you own them. You don't need to worry about the people running the business being capable, competent and of course ethical. 

Just stick to what you can purchase for yourself and hold it in your possession. That way it's yours to do what you want with your bottles when you want to and however you want. Drink them, trade them or sell them, they're yours and paid for.

Don't rely on others to make you a profit with your own money. Even the most capable, competent and ethical business's struggle. And success doesn't alway translate to a good return on investment. Remember they're doing this for themselves their business, not for you.

  Edited on 09-10-2019 at 22:24 pm
One life... Drink it well
peatbogger
Specialist Specialist
Posted on 09-10-2019 at 21:36 pm

Strange way of twisting terms.

Never seen shares been emitted in such a way, if it even can be called that.

Usually an emision is for a fixed number of shares at a fixed price to bring in the fresh cash you have calculated for your need to expand.

And here they invite to a crowd funding.

Just by chance I have recently watched several YT-videos on crowd funded development projects going belly up even after collecting 2-3M US$

By funding the project you are promised delivery of the final product.

The big IF is if it's ever fully developed and produced, or in many cases funders are the last to receive the product as the manufacturer will sell off the first production to generate more income.

The clear warning on crowd funding is that you are not pre-ordering anything, not buying anything, and you have to consider the money you put into it as a donation.

No crowd funding site is liabel to refund you anything if what you receive does not meet your expectation or if you do not receive anything at all. And the scary ting is that neither is the beneficiary/organiser of the funding.

How do you value a share from a crowd funding?

How would you liquidate your shares if you need your investment for other purposes?

The reason they are not stating any expected return is because there is no market to set a value on this "investment", you are not buying stock exchangable shares, you are buying shares of a crowd funding.

mrgood
Expert Junior Junior Expert
Posted on 09-10-2019 at 22:08 pm

peatbogger wrote:

The reason they are not stating any expected return is because there is no market to set a value on this "investment", you are not buying stock exchangable shares, you are buying shares of a crowd funding.

I'd describe it as investing in imaginary shares.  The owner retains full ownership.  With your investment you actually own nothing at all.  Like if I come across a toilet with a magic elf painted on the tank and flush money down it, will a magic elf pop out?  I suppose anything is possible.

I exaggerate, of course.  It's entirely possible these guys are on the level and simply trying to raise money in the cheapest, lowest-risk, and easiest way they can, but...

Bottom line: Very high risk for unknown and questionable rewards.

holborndrinker
Connoisseur Connoisseur
Posted on 09-10-2019 at 22:24 pm

Brewdog did something similar - Equity for Dogs - I don't think I'll ever see an actual return on my investment, but the cost of a share is soon clawed back through the discount you get (as well as other freebies).  I think Whisky Hammer are hoping to create a shop and/or become a bottler in which case the discount might outweigh the initial outlay.  If you want a decent return on your capital I don't think I'd bother.

Nunc est bibendum - mine's a double!
peatbogger
Specialist Specialist
Posted on 10-10-2019 at 00:34 am

holborndrinker wrote:

Brewdog did something similar - Equity for Dogs - I don't think I'll ever see an actual return on my investment, but the cost of a share is soon clawed back through the discount you get (as well as other freebies).  I think Whisky Hammer are hoping to create a shop and/or become a bottler in which case the discount might outweigh the initial outlay.  If you want a decent return on your capital I don't think I'd bother.


Just what I was thinking as well.

They are building a shop and a tasting room, probably also thinking about bottling.

The return will likely be access to exclusive events and tastings, discounts and probably priority.

If it works it will pay back over time, but some of it will evidently depend on your own individual time, distance, opportunaty and dedication to reap the benefits.

You might get some nice cheap bottles of whisky in the years to come, but I doubt it will help to finance the retirement condo on the riviera wink

Ganga
Expert Junior Junior Expert
Posted on 10-10-2019 at 02:25 am

Shouldn't it be Whisky Hammered if you invest here?

lincolnimp
Connoisseur Connoisseur
Posted on 10-10-2019 at 09:49 am

I think pretty much what every one else is, it sounded to me like if you help pay for their new premises, new tasting room, a possible bottling facility and perhaps some money left over  for them to purchase some real high end bottles for the tasting room (who knows on that one) then you will get priority for  bottlings and events at the tasting room.

I live hundreds of miles away so how can I pop up to the location, perhaps if you live close by you will have greater options but there seemed to me to be more of sense of `pay us some money and lets see what happens` about this money scheme.

This does not strike me as an investment opportunity unless you view it as an investment in opportunity to taste some nice whisky, certainly not an income stream from where I am looking?

  Edited on 10-10-2019 at 09:52 am
djmaxliving
Expert Junior Junior Expert
Posted on 10-10-2019 at 19:30 pm

Simply rule for me, "Business is business and I don't mix pleasure with business". I stick to what I know and that is I like buying bottles and drinking. This isn't the first time a company/ distillery ?has offered shares in a company for X and I have never been keen in buy share in a distillery. 

What make this business different from the rest of the competition out their ?

holborndrinker
Connoisseur Connoisseur
Posted on 14-10-2019 at 14:10 pm

They have managed to raise all the money on the first day and closed subscriptions!

Nunc est bibendum - mine's a double!
lincolnimp
Connoisseur Connoisseur
Posted on 14-10-2019 at 14:54 pm

holborndrinker wrote:

They have managed to raise all the money on the first day and closed subscriptions!


WTF?

Anyone managed to confirm what the punters actually get out of it yet?

mrgood
Expert Junior Junior Expert
Posted on 14-10-2019 at 20:14 pm

holborndrinker wrote:

They have managed to raise all the money on the first day and closed subscriptions!

WTF?

Anyone managed to confirm what the punters actually get out of it yet?

A fool and their money are soon parted... and it's a big ship of fools out there.

  Edited on 14-10-2019 at 20:14 pm
lincolnimp
Connoisseur Connoisseur
Posted on 14-10-2019 at 20:42 pm

They got their wish of 131K in a few hours and after 4 hours closed it after getting almost 203K,

They apologized to all those members who could not get a piece of this amazing investment.

Ganga
Expert Junior Junior Expert
Posted on 18-10-2019 at 05:10 am

lincolnimp wrote:

They got their wish of 131K in a few hours and after 4 hours closed it after getting almost 203K,

They apologized to all those members who could not get a piece of this amazing investment.


Isn't that a polite way of saying, "Patience, we'll want to extract more public funding." ????

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