Toronto restaurant launches first ever IPO
Crowdfunding has already helped launch a mini meat pie operation and has helped out a Toronto schnitzel staple - now Fonda Lola, a Mexican eatery on West Queen West, is banking its expansion plans on a novel Indiegogo campaign. The restaurant has launched what's it's dubbed as "the first-ever restaurant IPO," releasing 1,000 shares priced at $75 each.
The sale represents 20% of the company's market value, and estimates growth for 2015 at 11% based on projected sales of $600,000.
If owning a stake in a restaurant sounds like a risky proposition, then perhaps the incentives will help would-be investors feel a little more secure. Unlike traditional public offerings, these will be redeemable for 100% of their value in restaurant credits, and can be cashed out at market value after one year.
Shareholders will also be afforded perks like free rounds of margaritas or tequila tastings, plus discounts on catering orders and priority seating.
So what will Fonda Lola do with the funds raised? The restaurant plans to build capital to open a second location outfitted with a tequila tasting room.
Photo by Jesse Milns
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