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The aim of participation rights is to put you on an equal economic footing with the shareholders (equity investors).
This means that you stand side by side with the real shareholders and participate in profit distributions and in the event of a possible sale of the company.
Participation rights are securities. They give you a share in any profit distributions - and a share in the proceeds in the event of a company sale or IPO.
Unlike real shareholders, however, you do not receive voting rights and do not participate directly in the share capital. That is why we speak of virtual shares.
Beets & Roots is based in Berlin and was founded in 2016. The company offers balanced meals such as bowls, salads and wraps in eight restaurants so far. The company focuses on a contemporary dining experience that emphasizes customisability and speed, and is thus aimed primarily at health-conscious city dwellers.
In 2021, the company is focusing on financing via participation rights to further drive its Germany-wide growth.
With the participation right, Beets & Roots gives its customers and fans a direct share in the company's success. With the exit and profit sharing, the company rewards its most loyal existing customers and investors. The virtual shares offer a fair and positive direct participation opportunity for the investors.
Beets & Roots , which so far operates eight restaurants in four major German cities, is using the capital raised to open up to eight more locations, expand its own delivery business and build its own loyalty program.
|Scenario||Redemption amount (Investment + Proceeds)||Redemption|
|Basic interest rate (No Exit,
no Profit Distribution)
|€5,000.00 (€4,000.00 + €1,000.00)||at the End of the term|
|Exit proceeds* of €10m||
€5,012.21 (€4,000.00 + €1,012.21)
|after Exit during term|
|Exit proceeds* of €20m||€6,372.71 (€4,000.00 + €2,372.71)||after Exit during term|
|Exit proceeds* of €50m||€10,454.21 (€4,000.00 + €6,454.21)||after Exit during term|
|Exit proceeds* of €100m||€17,256.71 (€4,000.00 + €13,256.71)||after Exit during term|
Simplified, exemplary presentation. The regulations in the respective participation right conditions are decisive.
*Exit proceeds in the case of a share or asset deal. Calculation assumptions: exit proceeds after deduction of all costs and preferences. Complete sale of the company. No further changes to participating capital until exit. Full placement of the participation right.
No, with the participation right, investors do not have any loss participation or obligation to make additional contributions.
Participation rights have been designed with the aim of putting investors on an equal economic footing with real shareholders (equity investors). This means that investors stand side by side with the real shareholders and participate in profit distributions and in the event of a possible exit.
With a virtual share (participation right), investors benefit like a real shareholder from any profit distributions and in the event of an exit (e.g. company sale, IPO). Unlike real shareholders, however, investors do not receive voting rights and do not participate in the share capital. Therefore "virtual" shares.
In the event of an IPO, investors receive a pro rata exit participation based on the average share price in the first (usually) sixty trading days after the IPO. The details are governed by the participation right conditions.
In the event of a profit distribution, the investors participate proportionately together with the shareholders.
In addition to the profit and exit participation, investors receive a basic interest per year for the capital invested over the entire term. The basic interest is due insofar as the exit participation is lower than the basic interest itself.
Payment is made at the end of the term.
Yes. After a six-month minimum holding period, the participation rights can be sold. However, the participation rights are currently not tradable on an exchange, nor is there currently a liquid secondary market.