FourEX raised £670k on Crowdcube in the summer of 2015.
(Note - some of the facts in this blog have been challenged - see comments. Annon is quite right on both scores but it makes little material difference to the post)
This was two and half times their original target and they said the money was to establish the first 10 of their foreign currency exchange machines.
So how have they got on?
Well you could say not too well. Their websites shows just 3 machines - two of which were already negotiated before the CC raise. the news section on the website has no news for 2016(see comments). The accounts filed recently show an odd picture compared to the projections on CC.
They have made a slightly larger loss than predicted but for CC projections these are almost a miracle. Whats odd is that the shareholder figure in the projections shows investment of £1.375m by September 2015 and the actual filed figure is only £670k ie the CC raise. So somewhere new predicted investment has vanished. In the pitch the company identifies the need to scale up and states that another £3m will be raised ( no ifs or buts) before the end of 2015. There is no filed record of this money (see comments). Which might explain the lack of units?
Technically the company is insolvent and only being held up by what CC showed as LT directors loans but which are now filed as current liabilities. In the CC projections this figure was £1.2m but the filed figure is only £570k. So between the missing equity and debt finance, the bottom line is £780k worse off than the Crowdcube projections showed.
That is one large hole. There is also the anomaly of the cash balance - over £800k in the bank according to Crowdcube but in reality just £51 in the real accounts. So where did £670k go?
450 investors put money into this company so if any of you read this blog and have news on this company - let us know. Of course all new companies are subject to delays in their role out etc but we think its time for claims about phantom future investments to be stopped. We see time and time again companies promising new money but then it never arrives. It seems to be a way of legitimately lying.