Tuesday, 25 June 2019

Angelberry's sluggish death is all to familiar to Equity CF investors

Ryan Pasco and James Taylor applied to have their 2014 Crowdcube funded company quietly struck off in May 2018. Now in June 2019 is is still listed at CH as active with the Voluntary Strike Off suspended. Someone didnt like it. 

Angelberry stopped functioning as a company 2 years ago - we have written about them here 

So Crowdcube investors not only have a dead company but they cannot at the moment claim loss relief. We do not know why someone has stopped the striking off but a guess whom be that there is some dispute between the founders and shareholder/s or directors that has not been settled. It is crap way to run a business even after it has failed.

Are Crowdcube helping? Silly question.

This is just one of many examples and it is a very good reason for investors to join ECF.Buzz, where they know they will get up to date reliable information and if they bother to carry out the due diligence we have designed, they might just have avoided this crater. Site launching for real on 10th July 2019.

Our Buzz Rating for Angelberry has been under 20/100 since the start of 2017. 

Monday, 24 June 2019

Crowdcube's Mindflood DIYs its own Liquidation.

Mindflood or Patchworks, a tech company based out of NI, raised money on Crowdcube in 2015. Shareholders have heard nothing since 2016. Now in June 2019, they are told that the company is closing and they will receive some small change - donatable to charity.

According to Mr Heinz (no relation) the founder, investors would receive 5p per share on winding up against the share price of 73p. He doesnt apologise or even mention how inconvenient this might be.

In 2016, the company issued 139k C Prefs to Techstart NI and one other much smaller investor. These shares had a catch - in the event of liquidation the holders were first in the queue after creditors to be paid out. So ahead of the Crowd. To confirm this the company passed a new set of Articles - only voted on by A SHs. Most of the Crowdcube gang were Bs.

So as the paperwork states, the sale of the company's IP to an undisclosed buyer for £250k has enabled the £136k paid by Techstart to be repaid in full. Phew for them. Was there some personal guarantee?

What's left has been calculated by Mr Heinz to give the Crowd 5p per share. This is after he has allowed for £30k to be spent on the DIY liquidation. No mention as to who gets this is obvious.

One positive here is that there are no creditors left unpaid. And of course, as Heinz is keen to point out, Save the Children can benefit if you dont want the small change causing a hole in your pocket.

Another interesting point is that the DIY calculation includes not only the payment in full of the C prefs but they are also included in an extra £7k share of the final pot - despite the fact that the Articles state they are not entitled to a dividend. We think that might be wrong - not that it makes any real difference.

The company made steady losses until all the investment was gone. 

What a mess after 4 years. Just shows that it is worth knowing your way around share issues, share rights and Articles of Association if you dont want a surprise email pinging your inbox.

Sunday, 23 June 2019

Closing our Indiegogo Campaign ready for LIVE Launch of ECF.Buzz

Now that the live site is launching in July as planned, we are closing the hugely successful Indiegogo start up campaign. This will take a few days so you can still join via this route for now. 

In July you will be able to join our Crowd via the live site ECF.Buzz and you can become one of the many members who has access to our data and information on all things to do with Equity Crowdfunding. Together we can all help to turn what is currently a mess getting messier, into something worthwhile.

Saturday, 22 June 2019

Absolute Bedlam as brewer's numbers yet again prove Crowdcube projections are nonsense.

Bedlam Brewery makes great beer. They raised £515k in 2016 on Crowdcube. Now they are back looking for another £800k. Claims of success do not tally with our numbers. 

In 2016 Bedlam made various projections on revenues. Well lets just say that now we are in 2019, we can see very clearly that they have missed these by a long way. Readers here know this is a familiar story. 

Yet in their current pitch on Crowdcube there is no mention of this shortfall. They simply state that the CAGR is plus 41% over the last 3 years. As we keep on saying an increase of CAGR from a tiny base is of no use whatsoever. CAGR should be banned. In this instance the use of it to extrapolate the next 3 years growth is farcical. 

You may decide that the perks and beer are worth supporting and we wouldnt argue with that. But for goodness sake guys be a little more honest with your investors and drinkers. You have promised Bob Beamon and delivered Felicity Kendal. The reason for this latest round is pretty simple - you need cash as the sales are so far short of your plans that they haven't produced enough. 

At the very least investors should be asking why the company has delivered such small revenues on the back of a £500k plus investment? Are the next three years projections sensible and will cash run out again. There was no mention in 2016 of a new raise of another £800k 3 years later. 

Wednesday, 19 June 2019

Full Green - great vegetables sealed in a non recyclable long life plastic bag for the downright lazy.

Cauliflower is far more delicious than Eric the Greek's ear makes it look. Why then would you stuff it into an non recyclable plastic long life bag?

We have been following Cauli Rice, now Full Green, since the couple started on Crowdcube with their first business Righteous Salad Dressings. Righteous turned out to be a little disappointing and so they moved onto Cauliflower. 

They are now back on Crowdcube for what is probably a record breaking number of rounds for any of the same two directors. They simply need more money. 

The raise is going very well and they are consummate artists when it comes to the story and presentation. Hats off. The trick here is that they make it look like their process and end product produces the carb benefits. Actually that is all down to the simple cauliflower.

But with another hat on  - a tin one worn when looking into the real guts of a business, Im not convinced this is a good bet. Reviews of their products are and have been consistently very mixed. The bad ones are to be honest, not for pre watershed reading.

Full Green have also never managed to come in on budget - Righteous never did either. And like the switch from Righteous when that didnt work, FG are now launching a brand new product - cereal - which is in a brand new market. This is not being done on the back of a solidly built brand with break even points reached, with existing products. In fact rather the opposite. They never really cover off the reasons for the budget misses or for the continued losses.

I have little doubt it will fund but I am really struggling to see why. Stuffing freeze dried veg into long life plastic bags is from the 90's. Fresh Cauliflower is cheap and keeps very well. It takes 2 mins to make a fresh Riced Cauliflower dish and is much cheaper and I would say better for you. Why help increase the amount of plastic waste on our planet? We are desperate to do exactly the opposite.

Image result for plastic waste

So it has just been revealed - as nobody bothered to ask this Q before, that Full Green use Non RECYCLABLE plastic pouches for their processed cauliflower etc. They are very keen to tell everyone that they have sold 5m of these bits of plastic which will have gone into landfill, been sold to Malaysia where they are sitting in huge waste dumps polluting the surrounds. So why is this so? Well it turns out that the very process used to make their products demands non recyclable plastic. How many investors knew that? You are destroying the planet.

We estimate that if you put this plastic waste from Full Green end to end it would run from Landsend to north of Glasgow. What would that cost them and their shareholders to clean up?

Oh and finally the term Cauli Rice is now off the menu - or in the US at any rate. The Rice lobby, a powerful body in the States, were getting a little fed up with Rice This and Rice That. So new packaging and branding has been required - is that paid for as part of this round?

Good luck to all who sail in her. 

Beta Testing

If any Members of ECF.Buzz have not received their invitation to take part in the beta testing currently underway, then please do email me and we can get that invite sent out again. 

Thanks. My email is rob@ecfsolutions.co.uk

Friday, 14 June 2019

It's a Website

We are very happy to announce the birth of our new Website  - Beta ECF.Buzz

Beta was born today at 3 minutes passed 4pm, weighing in at 4mbs, after a week long labour. 

The Live Launch (Christening) of Beta will take place in early July and is eagerly anticipated by all of those who wish to see equity crowdfunding flourish instead of going down the tubes.

The ECF.Buzz Family.