- Investment sought:
- Discount offered:
Learn more about convertible campaigns.
GUNNA is an exciting new craft soft drinks brand, on a mission to transform ‘old school’ soft drinks in the same way that craft beer revolutionised the corporate lager market.
Only real tastes real. We make uncompromisingly good craft soft drinks packed with natural juices with less than 5% sugar and no artificial colours or flavours.
Our 4 delicious drinks, beat established competitors like Gingerella, Fentimans & FeverTree in taste tests and our recipes draw inspiration from around the world. We pack our cans with real ingredients that deliver interesting, complex and characterful flavours.
Our last crowdfunding round overfunded by 64%, now we’re back giving investors that missed out the chance to come on board!
Our vision is to become the no.1 craft soft drinks company so join us on our mission to revolutionise the soft drinks market.
We started GUNNA because to our very demanding taste buds ‘old school’ soft drinks lacked character and style. They looked and tasted bland and we had no idea what was in them, apart from too much sugar and some weird sounding stuff!
Craft food and drinks are booming as people move away from big brands, to local products with more flavour, natural ingredients, and greater transparency.
Just take a look at the craft beer market, no longer are there miles of shelves filled with red or blue cans of bland tasting, corporate lager. Today the craft beer section is and explosion of flavour and colour.
But soft drinks have stood still. We want to change that…
Carbonated drinks are the largest segment of the £17bn soft drinks market. Craft soft drinks are growing at a stunning rate of 56% year on year.
Use of Proceeds
• £300,000 interim funding to bridge us to the next full round in 2021
• Provides working capital to see us through the COVID crisis
• We have reduced overheads to £20k per month, so £300k allows us to survive a long crisis
• Ensures we can re-start our successful marketing activity when the crisis ends
This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".
The key terms that apply to the the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.
• Discount – conversion at a 30% discount to the valuation set by a Trigger Event.
• Valuation cap of £10,000,000.00
• Conversion is triggered by ("Trigger Events"):
o An Equity Fundraise – defined as the Company raising investment capital of at least £50,000 from one transaction or a series of transactions, in exchange for the company issuing of ordinary shares;
o A Change of Control of the company (transfer of more than 50% of the share capital); or
o An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• Longstop Date is 6 months from the date of the advance subscription agreement.
• If conversion has not been triggered by the Longstop Date shares will be issued on the longstop date at the Default Share Price, which is the lower of:
o the lowest price of any shares issued after the date of this Agreement; and
o £0.49 per share, which represents a 30% discount to the share price in the company's last fundraise.
• The convertible would also convert to equity at the Default Share Price in the event of winding up or liquidation of the company.
The company has the following outstanding loans:
1. £182,927 loan from Melvin Jay at an interest rate of 5% per annum. The loan is to was due to be repaid on 30th June 2022, but will instead be converted into equity on the same terms as the ASA
2. £40,000 loan from Maurice Jay at an interest rate of 5% per annum. The loan is to was due to be repaid on 30th June 2022, but will instead be converted into equity on the same terms as the ASA