Gerald Edelman supports Freddie’s Flowers in launching mini-bond

Gerald Edelman is delighted to announce that it supported Freddie’s Flowers in the launch of its ‘Flower Bond’, raising a total of £4.8 million.

Freddie’s Flowers, a UK-based flower subscription service, have seen their popularity grow since their launch in 2014, with sales in 2020 reaching £26 million.

The company plans to use the funds to further develop the business and expand into Europe. The Flower Bond is a mini -bond with an initial four-year term, offering a gross interest of five percent a year in cash or 7.5 percent gross interest in the form of flowers, or a combination of the two.

The success of the Flower Bond is in no small part due to the close relationship and engagement Freddie’s has with its 100,000-strong customer base, many of which have now strengthened their connection with the company by investing and becoming bond-holders.

Gerald Edelman acted as FCA Authorised Person for the purposes of Section 21 of the Financial Services and Markets Act 2000. The team was responsible for approving financial promotions and assisted in providing compliance and advisory services throughout the process. The Gerald Edelman team was led by Partner Carl Lundberg and included Manager Will Abell and Associate Alexandra Miller.

Gerald Edelman have provided support and advice for the release of over seven mini-bonds to date, most notably the launch of the Surrey County Cricket Club mini- bond (£7 million raised) to fund the modernisation of The Kia Oval and Craft Gin Club’s ‘Gin Bond’ (£2 million raised) to fund the next stage of the company’s growth.

Carl Lundberg, Partner at Gerald Edelman said: “It’s great to see the Flower Bond was so successful. Mini-bonds of this sort are a great way for a company to raise finance and engage with its customer base and the wider public at the same time.

We witnessed first-hand the effort put into this project by the team at Freddie’s and, through that, we also saw their passion for the business and everything they do! Freddie’s Flowers has been a great success story of 2020 so far and we wish them all the best for the years to come, as they embark on this next stage of their story.”

Nick Anderdon – Head of Strategy – Freddie’s Flowers added “We are delighted with the result of the Flower Bond, which will enable us to embark on the next phase of our journey. We’d like to extend our sincerest thanks to the team at Gerald Edelman who were constantly on hand to provide their support and guidance (under some stressful deadlines) throughout the process, which contributed significantly to the Flower Bond’s success.”

Mini-bonds are a relatively low cost and effective way for suitable private companies to raise funds from UK investors. They also allow the issuing company to gain significant publicity and directly engage with its customers, by offering them the ability to invest.

Whilst mini-bonds can be an excellent financing option for many businesses, they are not suitable for all.

To find out more about mini-bonds and whether they could benefit your business, contact Carl Lundberg at clundberg@geraldedelman.com.