Fireman’s Brew, which is based in Los Angeles, Calif., aims to sell more than 4.5 million shares of ‘Flash Seed Preferred stock,’ at $1.249 per share, through FlashFunders, an online equity-funding platform that connects early stage companies with investors across the globe. The beer company said it is hoping to raise $6 million, which will help to expand the brand’s distribution throughout the country.
“After implementing two successful private stock offerings for California investors, we’re excited to participate as one of the select launch companies featured on FlashFunders,” David Johnson, the brewery’s COO said in a press release. “Through their innovative online equity platform, we’ll be able to raise the capital needed to fuel the continued growth and expansion of Fireman’s Brew.”
While this latest announcement marks the company’s first to accredited investors around the world, it’s not the first time Fireman’s Brew has conducted a private stock offering to raise capital. The company has been leading similar raises since 2007.
Most recently, the brewery raised $1 million by selling one million shares to accredited California-based investors. In 2012, Fireman’s Brew offered 6,250,000 shares of common stock at $0.80 per share for an aggregate offering price of $5,000,000. During that round, which closed in September 2013, it raised $883,500, David Johnson, the company’s chief operating officer, told Brewbound.
Including the $835,000 raised from friends and family during the company’s formative years, Fireman’s Brew has secured a total of $2.7 million in funding since its launch in 2005. That money has been used to finance market expansions in places like Illinois, Arizona and Colorado.
“It is not cheap to enter a new market,” said Johnson. “We are adding staff to support those markets and cooperage is always a concern. That’s a bulk of how we’re spending the capital right there.”
The company plans to enter four new markets and sign with 12 distributors once its latest capital raise is complete. But in order to support those market entries, Fireman’s Brew needs additional cash flow, Johnson said.
“How we’re able to grow will be dependent upon this funding,” he said. “If I am able to put 10 guys on the street immediately, that is a game changer for us.”
The private stock offering with FlashFunders is scheduled to end on January 14 and Fireman’s Brew will need to sell a minimum of $3 million in preferred shares in order to receive any funding.
While Fireman’s Brew has slowly sold equity in the company over the years, founders Rob Nowaczyk and Ed Walker, as well as its board of directors, still hold a majority interest, Johnson said. And as it continues to grow, Johnson said Fireman’s Brew will eventually look for a liquidity event, perhaps even an IPO, in an effort to return value to shareholders.
“I’d like it to be in two-to-five years, but there is no way to pin a timeline on that,” Johnson said.
Currently the brewery ships beer, as well as a line of coffee and soft drinks, to 15 U.S. states and expects to sell more than 50,000 cases in 2014, Johnson said.
Additional information is included in the release below.
LOS ANGELES — Fireman’s Brew, a Los Angeles-based craft beer company founded by two firefighters, today announced that it has released a new private offering of stock, available through FlashFunders, an innovative no-fee, online equity funding platform that connects early-stage companies with accredited investors across the globe.
In accordance with the JOBS ACT and exempt from registration under Rule 506(C), the company is offering up to 4,803,843 shares ($1.249/share) of Flash Seed Preferred stock, with a minimum offering of $3,000,000 and a maximum offering of $6,000,000. The deadline for accredited investors to invest is January 14, 2015. The company plans to use capital raised to accelerate the national expansion of the brand through increased sales and marketing exposure in current and new markets.
“After implementing two successful private stock offerings for California investors, we’re excited to participate as one of the select launch companies featured on FlashFunders,” commented David Johnson, Chief Operating Officer for Fireman’s Brew. “Through their innovative online equity platform, we’ll be able to raise the capital needed to fuel the continued growth and expansion of Fireman’s Brew, by reaching accredited investors at scale across the globe.”
“FlashFunders is a unique marketplace that provides a turnkey solution for fast-growing companies like Fireman’s Brew to raise capital and connect directly with accredited investors across the globe,” said Vincent Bradley, the co-founder of FlashFunders. “We’re all about elevating the reach of startups like Fireman’s Brew to help more entrepreneurs and small businesses succeed.”
Conceived by two Los Angeles-based firefighters after extinguishing a brushfire in the local mountains, Fireman’s Brew grew out of their vision to create a premium line of handcrafted ales and lagers that would quench their thirsts after an exhausting day on the firelines.
Fireman’s Brew’s collection of micro-brewed beers is created using only the finest of all-natural ingredients to deliver bold, full-flavored, traditional tastes and easy drinking refreshment. Fireman’s Brew’s three-award winning beers include:
- Fireman’s Brew: Blonde (Pilsner-style Lager; 5% ABV)
- Fireman’s Brew: Brunette (German-style Doublebock; 8% ABV)
- Fireman’s Brew: Redhead (Amber Ale; 5.5% ABV)
In addition, the company is committed to giving back to the firefighter community upon which it was founded by donating a portion of company proceeds to the National Fallen Firefighters Foundation — the nation’s leading non-profit organization dedicated to honoring fallen firefighters and providing assistance to their surviving families.
Fireman’s Brew is distributed through leading beverage wholesalers in fifteen states including: California, Arizona, Nevada, Colorado, Nebraska, Iowa, Oklahoma, Illinois, Kansas, Virginia, Rhode Island, New York, Ohio, Hawaii and Michigan. The company also produces and distributes coffee and soft drinks.
For more information on Fireman’s Brew visit www.firemansbrew.com.
About Fireman’s Brew
Extinguish Your Thirst! with Fireman’s Brew, a premium line of micro-brewed beers created by two Los Angeles-based firefighters. Based in Canoga Park, Calif., Fireman’s Brew has quickly become one of the fastest growing craft beer brands in California and beyond. Created using only the finest of all-natural ingredients, Fireman’s Brew offers a selection of three microbrewed beers for off-duty refreshment. Originally created by firefighters for firefighters, Fireman’s Brew is committed to giving back to the firefighter community and donates a portion of its proceeds to the National Fallen Firefighters Foundation in Emmitsburg, Md. www.firemansbrew.com
A registered broker-dealer, member FINRA/SIPC, FlashFunders provides a no-fee online equity funding platform for entrepreneurs to publicly market their offerings, collect funding from accredited investors and gain access to SEC-compliant legal documents and escrow accounts to create their offerings.https://www.flashfunders.com