Broo’s Unhappy Anniversary

Give or take a day or two, it is now one year since ASX listed craft brewer Broo (ASX Code BEE) entered a trading suspension on the Australian Securities Exchange.

I don’t think that I can say ‘Happy Anniversary’ on this momentous occasion.

I have kept a close eye on Broo in that time, or as close as the holder of 120 shares worth less than my current pocket change can be motivated to keep. I have noticed that various directors have come and gone since Groges the founder was ousted in a shareholder putsch last March or April, and that most of those who have been interested enough in the company to have pushed him out or to have sought to participate in the running of the business since then seem to have lost interest.

In terms of assets, the company has divested itself of its Ballarat land, its brew pub in Mildura, and its various other physical assets. I do not think it now exists outside of its suspended listing, its bank accounts, and its intellectual property.

I now am very confident in saying that I do not think that Broo is going to trade again on the ASX in its current form. The most likely outcome is that its listing is used as a vehicle for some other company to list on the ASX sans IPO.

Now, more than ever, I am glad that as a pre-existing shareholder, I did not participate in the IPO in 2016, where I could have bought many more shares at 20 cents each. I had a feeling then that this was a huge premium to the actual value of the business, and events since then have proved me right.

Published by Ernest Zanatta

Narrow minded Italian Catholic Conservative Peasant from Footscray.

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