We find if you keep on digging, the truth will out. This maybe a new piece of it.
Thanks first of all to our anon comment pointing this out.
Sugru filed its YE Dec2016 accounts late, in Dec2017. When they pitched for the last time on Crowdcube in March to May 2017 and took another £1.9m off Crowdcube investors, the company and one assumes Crowdcube, knew that they had been in breach of their loan covenant - as stated in those filed accounts. This loan was with The Clydesdale Bank and it was the extended portion of this loan being withdrawn and the main portion being listed as due within 12 months, that forced Sugru into the fire sale. It is impossible to think that Crowdcube, with its own due diligence, did not know this fact. If they didnt, then that has be gross negligence and if they did, it is something far worse.
As pointed out by the anon comment, a breach of a bank loan covenant is a very serious incident. We can see the consequences here. So for this information to be hidden from the March 2017 investors seems astounding. If they had known the facts my guess is Sugru would have been forced to sell last year and this would have saved investors £1.9m.
We have been saying for 3 years that the accounting system in the UK is not fit for purpose when it comes to the modern age. You can easily delay accounts, hiding important information. We need a system whereby all companies using ECF as a funding channel have to declare accounts up to the time of the pitch or close to it - not sit on them and then file them 9 months later.
If we had this simple change - this fiasco would have been partly avoided and investors and HMRC would not be looking at another £1.9m in lost money.