Monday, 12 October 2015
Square Pie bond close to its target
Square Pie have just completed a mini bond raise on Crowdcube. But it isnt quite that simple.
The original bond was for £750,000. The pitch did not go well and by the end of their time, Square Pie had only managed to raise just over £300,000 - less than halfway. So as usual on Crowdcube they 'extended' the pitch, but this had little effect and the amount raised remained below £400,000.
Then in a new development for this platform, the amount being raised was suddenly reduced from £750,000 to £450,000. No new financial projections were produced with this reduced capital and questions about the legality and prudence of such a move on the pitch forum suggested that this may not have been a wise move. Square Pie's CEO had said publicly that if £750,000 was not raised then nothing would be. We expected the pledged money to disappear.
Well blow me down, the pitch closed yesterday with £680,000 raised - another £280,000 more than when the total was reduced. Why?
We havent got a clue - the terms were the same, the financial stability of the company was considerably worse and there had been no explanation. So why did punters who would not put money into the orignal bond suddenly jump in with an extra £280,000?
If anyone has any clues we'd love to know.