Use of Proceeds

The total anticipated project cost for Fair Isle Brewery is $1,350,000, including production equipment, build out for the brewery and tasting room, working capital and a contingency buffer. The owners have committed $496,000 in equity to date.

Proceeds from the NextSeed raise, if the minimum is hit, will be used for production equipment and building out the brewery and tasting room. This includes purchasing the brewhouse, fermenters, cellar equipment, malt handling equipment, barrels and foeders. Construction in the production space includes water and electric improvements along with trench drains and a new floor. The tasting room build out consists of demoing existing walls and structures, adding a cold-room, bar and finishes, improving the bathrooms and purchasing furnishings and fixtures. Working capital will be used to pay for inventory, supplies, rent and salaries. This is particularly important for breweries making farmhouse beer, as the quickest turnaround beers take 90 days from brew to customer. This means Fair Isle will be brewing for four to five months prior to opening its doors to customers.

Funds raised above the $200,000 minimum will be put towards increasing the number of seats in the tasting room as well as refining and finishing out the space to achieve the desired environment and feel. The brewery will also use the funds to purchase additional oak vessels such as barrels and foeders. This additional oak capacity will allow for ample beer aging, increasing the selection of mature farmhouse ales that Fair Isle will offer when it opens.

Key Terms

Issuer
Fair Isle Brewing, LLC

Type of Offering
Regulation Crowdfunding

Offered By
NextSeed US LLC

Offering Min

$200,000

Offering Max

$400,000

Min Individual Investment

$100

Type of Securities

Revenue Sharing Note

Investment Multiple

1.5x

Revenue Sharing Percentage

Up to 4.5%

Issuer will share a percentage of monthly gross revenue with NextSeed investors. For the first 6 months of revenue, Issuer will share 4.5% of monthly gross revenue. Thereafter, Issuer will share 8.0% of monthly gross revenue.

Maturity 54 months, including a 6-month startup period for ramp up
Payments

Monthly

Security Interest Blanket Lien
Ownership % Represented by Securities

0% Investors will not receive any equity interests in the Issuer or any voting or management rights with respect to the Issuer as a result of an investment in Securities.

View the Issuer's SEC Form C filing

Revenue Sharing Summary

Once the Issuer commences operations, the Issuer will share a percentage of each month’s gross revenue with the investors as a group until they are paid in full.

Monthly Revenue Sharing Percentage

  • First 6 months of revenue: 4.5%
  • Thereafter until maturity: 8.0%


Each investor will receive its proportionate share of the monthly payments made to the investors as a group.

Example:

Total Raise Amount: $300,000
You Invest: $3,000
Month: 11
Revenue: $100,000


The issuer anticipates a 6-month startup period for renovation and construction. If the 11th month after the fundraise falls within the first 6 months of revenue, the issuer will share 4.5% of revenue that month.

If the issuer generates $100,000 in revenue during this month, the issuer will make a $4,500 payment ($100,000 x 4.5% = $4,500) to investors. Since you invested with 1% of the total amount raised ($3,000 / $300,000 = 1.0%), you would receive a $45.00 payment in Month 11.

*The calculations above are mathematical illustration only and may not reflect actual performance. They do not take into account NextSeed fees of 1% on each payment made to investors. The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.