Parrotdog - Craft Beer

[Jaa]

Parrotdog has over a 1,000 shareholders and a market cap ~27m so deserves a thread somewhere.

The company has two classes of shares, Ordinary Shares with voting rights and Investor Shares with limited voting rights. Caused by raising on two different equity crown funding platforms and trying to keep under 50 "official" shareholders to avoid becoming a code company. The voting rights are not worth much as the three founders control ~65% of the company.

Something strange recently happened in their first secondary trading event held on Orchestra. The price of the ordinary shares settled at double the price of the investor shares with reasonable volumes in both classes. Anyone know why?

[stoploss]

JAA, I picked up a few investor shares as they looked to be going cheap …. Time will tell .
From looking at both markets it appeared to me that there were quite a few sellers of the investor shares ( times are tough ) .First opportunity to raise cash… $ 1.00 wasn’t too far from the earlier raises …
As you have said the other shares are more tightly help . Someone was buying a reasonable parcel of those at 2.00 so it leveled there .
I also have shares in Behemoth, recently raised at 90 cents . They have a closed chat for shareholders , seems to be quite a few people popping up with odd parcels to sell as well .

[huxley]

There are 13,891,045 shares, so the investor shares were trading at an implied market capitalisation of just $13,891,045 ($1.00) and the ordinary shares were trading at an implied market capitalisation of $27,782,090 ($2.00). As you say, the voting rights are not worth that much more given the directors control the company, my guess is the buyers were simply acting irrationally.

[percy]

I can not find this company on USX site.
Where are they quoted.?

[stoploss]

I can not find this company on USX site.
Where are they quoted.?
They aren’t Percy , they were a snowball effect raise from memory .
https://www.snowballeffect.co.nz/

[percy]

They aren’t Percy , they were a snowball effect raise from memory .
https://www.snowballeffect.co.nz/

Thanks for the link.

[Jaa]

I can not find this company on USX site.
Where are they quoted.?

Apologies Percy, I asked for a separate forum for companies like this in the Nagg section but didn't get a reply for a month so thought it fit best here.

Here is the link to their last equity raise (https://www.snowballeffect.co.nz/offers/parrot-dog-jwoy9) on Snowball which raised $2.3m. They previously raised $2m on pledgme (https://www.pledgeme.co.nz/investments/234-parrotdog-brewery) in 2016. It is these two groups of shares which shareholders could buy and sell recently.

Raising on equity crowd funding platforms and quarterly secondary trading on Orchestra (now owned by Shareies) seems to be the future for growing small to medium sized companies. As small sharetraders, we might as well get used to it.

[Jaa]

Thank you Stoploss and Huxley, agree I found it irrational too. Thought I was missing something obvious!

Been a bit disappointed at Parrotdog's growth rate, they only seem to talk about production issues and small scale limited releases. As a business wouldn't they be better off, focusing on large production runs of their biggest sellers?

[huxley]

Thank you Stoploss and Huxley, agree I found it irrational too. Thought I was missing something obvious!

Been a bit disappointed at Parrotdog's growth rate, they only seem to talk about production issues and small scale limited releases. As a business wouldn't they be better off, focusing on large production runs of their biggest sellers?

I think their Birdseye hazy IPA is about 50% of production at the moment?

Till the next annual report is released, there are a few lines found online setting out the latest information about their revenue and ambitions for future growth and scale:

“Although demand has often outstripped supply, we have achieved consistent revenue growth since FY16 at a compound average growth rate (CAGR) of 45%, generating $17.3m of gross revenue in FY22. We are on track to achieve $20.1m for FY23 and forecast to continue growing at a CAGR of 18% to achieve revenue of $33.5m in FY26.”