Monday, 30 May 2016

This Crowdcube mess you are simply not going to believe

MEEM SL Ltd raised £700k on Crowdcube a year ago - see here 

We were initially contacted by a shareholder who had been sent a letter by Robert Brent the CEO. This letter dated 19 May stated that MEEM SL had been forced to close as of the 6th April. However the good news was that all shareholders were being offered free shares in a new company MEEM Memory, with a 30% increase in their holding. 

Bear with us, this one is a cracker!!

There was no explanation as to where the £700k had gone. According to the Crowdcube raise, the directors had stated they would not pay themselves a salary for the first year and the IP, the real value in the company, had already been paid for.

Further to this, MEEM SL had just completed a Kickstarter campaign, successfully raising over £50k on the 9th of March. 

Again further to this, one of the company directors had taken out a charge over the IP of the company, registered on 25 February 2016. There was no mention of this charge in the Crowdcube or Kickstarter pitches as far as we can see.


As if all of this didnt already stink like the old Billingsgate market, we were contacted today by another MEEM SL shareholder (we'll call them OMG for clarity) - someone who had invested via Crowdcube. In fact they had invested in more than one company on the platform.

They wanted to know where we were getting our information from about MEEM SL and Memory, as they had had no correspondence from the company or Crowdcube. This shareholder had a holding considerably larger than the one owned by our first reader. They checked spam folders etc but nothing. 

How is that possible? How could both the company and Crowdcube miss an investor off the list when sending out such an important communication? How many more investors have been left in the dark? What in God;s name is going on here?

OMG had been asked to invest by Robert Brent, not once but twice, in the Kickstarter campaign only a couple of months ago - so he had the right email. In fact in the last email on this he sent out, he asked OMG to rally family and friends to put their money in as well. 

We are still attempting to understand how a company that was clearly on the verge of bankruptcy was able to pitch and raise money on Kickstarter or when the decision was made to scrap MEEM SL and create MEEM Memory. We are also trying see what happened to the £700k and answer the key question Robert Brent avoided, why was it necessary to close MEEM SL.

Of course Crowdcube will come out with their usual drivel but anyone with a brain has to be asking if they can allow this to happen what else are they making a total mess of. 

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