Thursday, 19 January 2017
Crowdcube's Savvy Foods past its sell by date but has a cunning plan
Savvy Foods raised £85k on Crowdcube in 2015. Just a year or so on, they have collapsed leaving debts of around £189k. Well done Crowdcube.
We wrote about them last year here
But - here is the really interesting bit - in a letter to shareholders the founders of Savvy have rebirthed their company and called it Carobco Ltd. Easy as peasy. Off load the boring old debts of £189k and make hay.
Whats even better is that they are crowdfunding again. - on their own account using some accountancy firm.
The founders report on the failure of Savvys is wholly ubelievable. It should also be noted that in this letter to shareholders the founders claim the company has been liquidated. Not according to CH it hasnt; so there is still a chance that claimants may take action. Of course as we know CH may be behind the times.
Whats almost unbelievable (this is equity crowdfunding after all) is that they are approaching all Savvy's shattered shareholders for more cash. And wait for it, they are using the valuation they agreed with Crowdcube in 2015 of £0.5m, to offer new shareholders a 50% discount! Its a bargain for sure - 10% of the newco for just £25k.
In a previous email just before Christmas16, the founders had offered to pay back shareholders or offer them like for like investment in the new version. They now say they cant do this as a lead investor in Caroco wont allow it. Oh well, it was a lovely thought.
Is it just us or is there something very wrong with this?
Takers should form an orderly queue and await further incarceration.