Sunday, 21 January 2018

Berrywhite are making a mockery of the FCA

Berrywhite have been trying to raise £150k on Crowdcube for ages. Now looks they will succeed thanks to some highly dubious marketing on Crowdcube's platform.

Berrywhite were never going to make it. they have rasied money before and delivered nothing close to what they have promised - this blog is full of them. They have extended the campaign at least once and reduced their valuation but it was stuck. Until they came up with this - posted yesterday

Bonus shares for the next five investors who invest £5K or more

awmjennings 1 day ago
7 Replies
So far we have raised £126,140, so we are still short of our target by £23,860 and our deadline is midnight tonight.
So the next five people to invest £5K or more up to a combined total of £25K, I will double your shareholding by gifting you some of my personal shares.
Please note that the shares that I gift you if you invest will not be EIS shares.
Andrew Jennings
Managing Director
Berrywhite Limited

Some of the responses - 
You should have listen to investors feedback weeks ago on having a justifyable valuation to avoid this last minute incentives.
Best wishes
Dear Mr Bean, We listened to you actually and we did reduce the valuation:
New update from Berrywhite Natural Drinks raising investment on Crowdcube. Capital at Risk.
Is this allowed and is it legally binding?
This essentially creates a two-tier pitch. Those paying more are buying at half price. I never saw this on crowdcube before.
Finally, what about investors who already invested over 5K before this point. It would be unfair not to give them the same deal as this would be the same as changing the valuation of a pitch halfway through but only applying it to new investors.
I think we need a crowdcube ruling on this offer.
Moreover I am none the wiser as to why and on what basis second extension was granted.
I have cancelled my token investment.
Best wishes and good luck.
Dear Charles,
Thank you for your comments. We will contact Crowdcube on Monday and raise your concerns.
Best regards,
I will pull my investment if its not confirmed that all investor in the same round are "pari passu".
I agree with comments above the right valuation from the start would have gone a long way to getting this round funded quickly. Focus on revenue growth and EBTIDA ... valuation will follow along.
Same thought as cube_charles_murphy
Are there any learned friends, with expert knowledge, who are able to comment ?
Similarly I trust the CrowdCube compliance people had a say BEFORE the bonus offer was put onto the site and formally concurred it.
Crowdcube Capital Ltd is, as it says on the website footer, authorised and regulated by the FCA.
So it seems that despite the total having shot up to 92%(from 80%), people are not happy. Do Crowdcube really think this is a sensible way to carry an FCA regulated trade? Surely not - even they must see this for what it is. 
Monday will tell....................

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