AN URGENT APPEAL and an incredible one-off opportunity for customers to purchase share equity in Vinyl Revolution

18.12.18

Vinyl Revolution opened its doors for the first time on 29th October 2016 with a ‘proof of concept’ pop-up shop in Tunbridge Wells. Our dream of being the first shop to combine all the elements of Pop Culture – Music, Art & Fashion – into a friendly shop which welcomed music lovers of all ages, genders and tastes was a reality. Our pop up was a resounding success (£46k sales revenue in just 11 weeks) and we were off!   Vinyl Revolution is now just over 2 years old.

The past 2 years have been a rollercoaster – we’ve had superb national press coverage, exceptional customer reviews and our own range of products have been a hit with customers from all over the world (customers in 30 countries to date).  All our pop up shops have been both popular and profitable.

Unfortunately the past year has also brought more than its fair share of challenges.  Our first Christmas in Brighton was blighted by scaffolding covering the shop and growing uncertainty about Brexit has caused consumers to stop spending.   It's been a year of low sales revenue for all retailers (both High Street and online) and we are now experiencing the worst Christmas trading figures for many years.  

The fact that out of town visitors have been faced with sitting on replacement buses for hours in order to reach Brighton every weekend since October (due to major rail works) has added yet another  problem all Brighton businesses could well do without.  These exceptional circumstances have combined to create a sharp downturn in footfall and sales revenue. 

The impact of this has been two-fold:

  • Firstly we’ve had to cut costs and have been unable to fund planned growth activities. Our Brighton shop was never intended to be our main source of revenue – we have always planned to build the Vinyl Revolution brand online, via pop up shops and a mobile shop. These activities have been forced to take a back seat.
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  • You may recall that we created an investment pitch and made a video to attract institutional money and angel investor, unfortunately our timing was terrible as investment in pretty much everything except technology has been put on hold whilst Brexit is being resolved.  We are planning to crowdfund in early 2019, and have been provisionally accepted by one of the biggest crowdfunding platforms, but it will take a while to realised funds from this activity. 

Secondly, and the main reason for our urgently seeking investment, is that we are about to run out of cash and will struggle to pay next quarter’s rent and fund ourselves through the quiet retail months of January and February (which will be even worse than usual this year due to the lack of trains running from London over crucial periods such as February half-term). 

It is likely to be Spring before crowdfunding enables us to kick-start our growth plans and consumer confidence returns when Brexit is finally resolved. 

So in order to save our business we have got creative and have designed a one-off equity offering with the following fabulous benefits:

• You will become a part-owner in Vinyl Revolution and get a warm fuzzy feeling from knowing that you helped to save a fabulous young company

• You will reap financial rewards when we realise our growth plans and the value of your equity share soars

• You will become a member of the ‘Vinyl Revolution Equity Club’ and receive a free gift, a discount on all future purchases and access to all sorts of exclusive fun shareholder events (more details below).

We really hope that you will invest in the future of Vinyl Revolution and join us on the next part of our journey. The good times WILL return and great things are ahead for us (and hopefully for you too!!!)

Thank you for reading this and for all your continued support.  Please contact us to ask any questions.

Simon and Rachel

 

If you haven't viewed our investment video before you might like to take a look at it before you read the financials and small print.

The Financials:

  • For purposes of this one-off investment opportunity we’ve valued the company at £350,000. This is a major reduction from our company valuation of £1m earlier this year
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  • We are selling a 10% share of the company (VR Music Ltd) for £35,000. That equates to a price per share of £3.50.
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  • We are offering a number of investment packages to Vinyl Revolution customers:
  • • 30 shares for £105
  • • 100 shares for £350
  • • 500 shares for £1,750
  • • 1000 shares for £3,500
  • *Shares in other quantities can be purchased
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  • All investors will become a investor club member and will be invited to an annual equity partners party. Additional partner benefits are detailed below:
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Platinum Investor (for investors with 1000+ shares)

  • Gift of a framed Vinyl Revolution print
  • 15% discount on all Vinyl Revolution products*
  • Invitation to exclusive Platinum Investor member events
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Silver Investor (for investors with between 100 and 999 shares)

  • Gift of a framed Vinyl Revolution print
  • 10% discount on all Vinyl Revolution products*
  • Invitation to Investor member events
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Bronze Investor (for investors with between 30 shares and 99 shares)

  • Gift of an unframed Vinyl Revolution print
  • 5% discount on all Vinyl Revolution products*
  • Invitation to investor events

*Discount applies to all non-sale products

The Small Print:

• £35,000 will secure Vinyl Revolution’s financial position and must be raised by 24.12.18. All investment monies collected before we hit this target will be deposited into a new savings account (which will remain separate from other company funds). A receipt will be issued.

• When the £35,000 target is met we will transfer all investment monies into the main company bank account and register new investors as shareholders in the company.

• If the £35,000 target is not met all monies will be immediately refunded as without investment Vinyl Revolution will be unable to remain solvent

You can apply to become a Vinyl Revolution investor by emailing rachel@vinyl-revolution.co.uk.

Please feel free to contact us to ask any questions - by telephone: 0333 323 0736 or by email: rachel@vinyl-revolution.co.uk.

Vinyl Revolution is the trading name for VR Music Ltd. Our company registration no is 10278164.