FAQs
The share offer to raise funds for a community purchase of The Hollybush is now live, and we have started to receive funds. A few questions are cropping up regularly and we thought it would be useful to add them here. Feel free to ask further questions via thehollybushdraethen@gmail.com, and if relevant we will add to the FAQs.
Q. Why is the minimum investment £1000?
A. We need to raise sufficient funds quickly to start negotiations with the vendor before they put the pub to auction or allow developers to buy it for alternate use. We feel a lower initial investment is unlikely to reach the target amounts in time available.
Q. Has my investment got to be in multiples of 1000?
A. We stipulate a minimum investment of £1000, but any amount over that is good up to the maximum per person of £50,000.
Q. Can I make a donation without becoming a member?
A. Yes details of our bank details can be found here Donate to support.
Q. When should I invest?
A. ASAP. We can’t start negotiations with the vendor until we have sufficient funds in the bank for them to know that we are a serious proposition. We need to get a substantial balance in the bank in the very near future, in order for this venture to proceed, so ASAP please!
Q. When might I be able to get my money back?
A. The ultimate aim is to be able to return all the invested funds, but this is a long term goal which depends on the long term success of the Project. Our business model starts to set aside money each month from year 4 to accumulate funds to support a limited return of funds to shareholders.
Q. Will my investment go up in value?
A. Not in monetary value. The shares do not appreciate in value, but of course the value to the community should increase.
Q. What happens to my money if we are unsuccessful in securing The Hollybush?
A.This is covered by the Share Offer document on page 16: “funds raised from the Community Share Offer will be returned to the investors with minimal administration costs, if any are actually incurred, deducted.”
As an example if net costs are £600 and we have 70 members – then each member would bear £8.57. In order to mitigate this, investment monies are transferred to a 35 day notice account. This will generate interest that will significantly reduce the net costs. The final decision and approach will be proposed by the Management Committee for formal approval by the Society’s Members at that point in time.
Q. Will I get interest / dividends?
A. If targets are met, at the discretion of the Management Committee, we hope to offer a return on investment in the form of interest. Our business model envisages a 3% interest payment in years 4 and 5 – but this is not fixed or guaranteed.