Below is a copy of a letter from The Hive Live team, updating on the share offer and an extension
Update to The Hive Live Share Offer
Thanks to everyone who has subscribed to The Hive Live community share offer.
Since our last update The Hive has applied to the Plunkett Foundation for blended funding through ‘More Than A Pub’ (MTAP), a sector specific Power To Change fund to help communities buy their pubs which has just opened for bids. To allow time for a decision we are extending this share offer until August 30th 2019. Subject to our raising the required level of community share finance we hope to be offered £100K by MTAP, £50K in grant finance and £50K in loan finance.
Key Fund are still looking to support the project with £150K, £100K in loan finance and £50K in grant finance, also subject to us raising the required level of community share finance.
The target raise is £320K (£250K plus VAT to purchase de bees plus £20K working capital), with £250K blended funding from MTAP and Key Fund and the £10K raised through Hive events the minimum required from community share finance to purchase de bees will be just £60K with nearly £40k community shares already subscribed. The optimum target for community shares is now £160,000 which would be sufficient to fund £100K renovation works without delay.
Milestone 1 - Raise at the very least £60K from community shares to secure the purchase of the asset with sufficient working capital to trade. (conditional on blended fund of £100K being secured from MTAP fund.)
Milestone 2 – Raise up to 160k in community shares. This £160k is likely to be £80k from individuals which would be matched by investment of £80k from Big Society Capital subject to Advance Assurance from HMRC that The Hive has qualified investors for SITR - a condition of Big Society Capital’s investment is that The Hive gains Advance Assurance of SITR for investors.
We expect to hear HMRC’s decision on whether to issue The Hive with pre assurance for Social Investment Tax Relief (SITR) in the very near future. Should The Hive qualify investors-members for SITR, The Hive will be able to access Match funding from Big Society Capital.
Should The Hive not qualify for share match funding alternative funds will be secured/raised to complete planned renovation works in February 2020 as long as the minimum target is reached and the asset purchased.
Please be advised that the Hive’s share offer document has been updated to reflect a structural change which requires your consideration. In order to meet the eligibility requirements for SITR The Hive will operate the bar and food concessions directly and not in partnership with CI (WV) Ltd however experienced professional hospitality staff will be subcontracted from
the employee owned co operative on flexible terms in order to meet the day to day service requirements, without an management fees.
Should The Hive fail to raise the minimum targets required to complete the purchase of de bees with this community share offer, subscriber investments will be refunded in full.
Thanks for your support
The Hive Committee