Should I only pledge funds that will be available to be called upon in the next few months, to be used specifically for the purchase? I am sure more would be pledged if you could include a post-purchase scenario where people might be willing to subscribe monthly to a ‘Friends of the Green Dragon’ type support scheme to contribute to running expenses etc.?
All funding generated from the current pledge will be used to purchase the pub and set up costs. Each share has a value of £50, and you need to have £200 i.e. four shares, to be a voting member. You can buy a single share or multiples of shares at a time and you will have the option to buy more shares later if you wish. You will only get one vote though, no matter how many shares you have.
Once the proceeds of our pledges are spent buying the pub, would shares still be available to buy as a way of supporting the pub? How would that work?
You will be able to invest into the pub once the initial share offer is complete and the pub has been purchased. Whether we hold the funding raised from selling these shares in a holding account or use it as part of our investment will depend on how things are at the time. Ideally, our business model means that we are self-sufficient and making a profit, so additional revenue will go towards investment projects. It is inevitable that members will leave the village over time, and therefore may want to apply to withdraw their shares. At this stage, new or existing members who are interested in buying shares would be invited to invest.
If the pub was not making money and it was decided to sell the pub, do shareholders get some money back?
If we were forced to sell the pub, those creditors from which we have borrowed money, using secured loans will be first to receive payment in full and all debts settled and fees paid. Members of CSN Community Pub Limited will then each receive a percentage of the remaining balance, which will be proportionate to the number of shares each member holds.
How much money needs to be raised in order to buy the pub and get it open again?
The Steering Committee believe that a minimum total of £400,000 is required to be raised. Our aim is to raise at least £220,000 from the local community through the share offer. The balance will be funded through grants and commercial loans depending on the success of the share offer. Clearly, it is in the interests of the society and the shareholders to maximise the money received through the share offer to minimise loans in order to enhance the profitability of the pub.
Why are you trying to purchase the pub during COVID-19 when pubs are not allowed to open?
Securing a pub under community ownership is a complex and time-consuming undertaking. The Plunkett Foundation has advised that this type of campaign can take between 12 – 24 months from start to finish. As part of the work completed to date, the Steering Committee has developed an Action Plan (see Action Plan under the Downloadable Documents section on this website) which defines the steps we must take in order to complete the acquisition and establishment of The Green Dragon under community ownership. Whilst it is recognised that attempting to buy a pub in the current climate does not make for good business sense, we are still a long way off securing the pub and hope that by the time we are in a mature position to make an offer, COVID-19 is under control and hospitality has resumed some sort of normal. Whilst we are waiting for normality, the Steering Committee firmly believe that we need to continue making positive progress on the campaign so we are well positioned and ready to launch!
What refurbishment is planned for the pub?
Based on feedback received as part of the Community Questionnaire and the Buyers Survey Report, commissioned in November 2020, subject to available funding, our initial refurbishment projects will be focused on renovating the toilets and creating a more useable and family-friendly outside garden space. The further refurbishment will be considered as and when available funds permit.
Will the business pay dividends from any profits?
Any profits realised from the business will be reinvested back into the business to improve services or to support other projects in the community. Payment will be made annually which is effectively the interest on the money invested; this is at the discretion of the Members’ Committee and is restricted to a rate of between 2% and 5% above Bank of England base rate.
Do I get my money back if the community purchase does not succeed?
Well, it will succeed of course (it has to), but the short answer to the question is yes.
In the unlikely event that we do not raise sufficient money through the share offer, and were unable to buy The Green Dragon, all investors would have their money returned in full. Only when we are completely confident that we have the funds to buy the pub and take things to the next stage would we start spending significant amounts the money that has been invested. Before that, we may spend a small amount to help generate further funds.
Can I buy shares as a gift for someone?
Yes. You will have the ability to buy shares for yourself or as a gift for another individual.
I want to help with fundraising, who should I contact?
Lorna Davis is heading up the fundraising sub-committee. If you are interested in helping, please drop her an email on firstname.lastname@example.org
When I buy shares, do I get a certificate?
Yes, you will receive a certificate to formalise the purchase of shares. The certificate will provide instruction on how many shares have been purchased by the individual. For completeness, and in accordance with our approved Model Rules for the CSN Community Pub Limited society, the Members Committee will maintain a Register of Members. The Register of Members will list all members and shareholders and the total number of shares each individual holds.
Is there a minimum and maximum value of shares I can buy?
The minimum has been set at £50 per share and you need to have £200 i.e. four shares, to be a voting member. The maximum an individual can invest has been set at £20,000.
What is the minimum length of time I must hold my shares?
3 Years from the issue of shares. Members may apply to the Society to withdraw shares. Withdrawal applications are unlikely to be accepted during the first three years after the closing date of the share issue. You should therefore view this as a long-term investment and review your finances accordingly.