USA, AL: Foley’s first microbrewery launches crowdfunding campaign

Low Brim Brewing will soon be the first microbrewery in Foley, and the company needs your help. Low Brim is the only equity crowdfunding campaign in Baldwin County; those that give as little as $100, can receive an expected 17.4 percent annual return on investment after the first year, the Gulf Coast News Today reported on April 27.

So, how does this all work and what does it mean?

In 2012, President Obama signed into law the Jobs Act, which is a law intended to encourage funding of U.S. small businesses by easing various securities regulations. The act requires the Securities and Exchange Commission to adopt rules to implement a new exemption that will allow for equity crowdfunding, which means that those who invest will then hold shares or securities of the proposing business. The initial time frame was for 270 days for review. Issuers that generate any offers or sales of securities purporting to rely on the crowdfunding exemption would be unlawful under the federal securities laws until such date as the regulatory groups have deemed it appropriate. But unfortunately, 270 days turned into several years and each state started passing their own regulations for “intrastate” offerings, which means that if an offering was on the table that it will only be eligible for investors/people of that specific state.

So, with that, Alabama became the 13th state in the country to pass a bill indicating how entrepreneurs and small business owners can use the bill legally. This bill is titled SB44 and states that anyone residing in the state of Alabama can invest up to $5,000 per project and own securities of the proposed business without having to register with the state or SEC as a private investor. These offerings are open to the general public to help stimulate and cultivate our communities.

As a state-regulated investment, will Low Brim’s business practices be effected?

“Not necessarily,” explained Jacob Waters, president of Low Brim. “What we will do is selling 49 percent of equity of the company. When you invest with us, you get shares with the company. You can’t sell the first year, but after that, you get an annual dividend from company profits. It’s a mini stock exchange in the state of Alabama.”

Starting at only $100 for investing is so that anyone can be involved and have part in the brewery. The maximum investment is $5,000, and investors must reside in Alabama.

“It keeps money in the state and people can build their communities up and invest in their communities,” Waters said. “If they’re going to invest in their community, they’re going to eat in that place, shop in that place because they have ownership in that place.”

The company’s crowdfunding goal is $550,000 by the end of May. As of April 24, the fund had $39,300. Low Brim Brewing hopes to open its taproom doors in November 2017.

Waters and Patrick Burke, vice president, will have four beers in distribution and eight on tap in the taproom at 116 W. Laurel Ave., Foley.

Those interested, can invest online at LowBrim.com, or attend one of the next Brew and Stew events at the brewery in downtown Foley. These events allow potential investors to taste the beer that will be in the taproom, talk to the owners, ask questions and invest. The next Brew and Stew event is April 29, 2-3 p.m.

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