McMenamins Seeks Investors to Raise $20MM

Ready to expand its current list of 56 properties in Oregon and Washington, McMenamins is seeking to raise $20 million from investors. This Preferred Stock Offering would be used to proceed on expansion projects in addition to retiring short-term debt that has resulted from the COVID-19 pandemic and shutdown of many of its locations.

And if you are interested in investing, McMenamins is attempting to attract minimum investments of $100,000 or more from 150 to 200 accredited investors. To be an accredited investor, one must have $1 million or more in net worth, excluding the value of the individual’s primary residence, or more than $200,000 in annual income. This new financial structure will shift the company’s capital structure toward a greater reliance on equity.

This is the first time the company has opened direct investment in McMenamins, Inc., to those outside the McMenamin family. The monies raised will assist in getting the company set up for a full re-opening from the coronavirus shutdown and to add lodging and meeting facilities to Cornelius Pass Roadhouse in Hillsboro and to finally transform the former jail into a hotel at Edgefield in Troutdale. McMenamins also has a few other fun projects up its sleeves.

“We realized with the closures it would be quite a while until we could get to these very exciting projects. So, we’re looking for investors who share our interest in family friendly pubs and hotels − people who already embrace our love of architectural restorations where artists have interpreted local history,” said Mike McMenamin, in a news release. “This is more than a financial investment, it’s an investment in community building. Places for gathering and coming together will never go out of style. Our focus is on sustaining operations now and being ready for an exciting and creative future.”

In recent years McMenamins sought investment for two large renovation projects in Washington State. These projects were the revitalization of the Anderson School in Bothell and the Elks Lodge in Tacoma. Two nicely done projects.

“Brian and I are as involved in the business as we first were when we started working together decades ago. We care as deeply as we did then,” said Mike McMenamin, in a news release. “Over time, as we have greatly expanded our community presence, our kids are now as involved and committed. Together, we share excitement about what’s ahead.”

This is a private placement of securities and units will not be publicly traded. Investors are expected to earn an annual 3% cumulative dividend and up to a 6.5% overall return over a timeframe of five, eight or ten years. For more information, go to http://invest.mcmenamins.com/