Tuesday, 5 June 2018

Here we go the round the ............... Bidstack reversed in to Kin Group.



So Bidstack. Founded by the same guy, James Draper, who was Head of Commercial at Shopwave (according to Crowdcube). Both used Crowdcube. Bidstack was valued on Crowdcube in 2015 at £1.1m. 


Bidstack has now been reversed into Kin Group - a shell co listed on AIM. It has been termed a reverse takeover. Kin had to take over someone by August this year or lose their AIM listing. The deal is still not completed.

It appears from said deal, that Kin are paying £400k for the entire share capital of Bidstack by way of investing this sum in the company. We are not sure what sort of accounts Bidstack have but from previous filings it doesnt look too pretty. Bidstack have been playing ping pong with their accounting dates since their Crowdcube raise. 

The other company Draper used to work at, Shopwave, had projected net profits on Crowdcube of £1.6m for 2016 but only managed to bring in losses of £50k. Silly old projections. 

Crowdcube investors, there are only 66 of them, will receive shares in Kin Group. Their shares are currently suspended.

This story reminds me of a few other recent events involving Crowdcube investors and steam rollers. I suppose it is that time of the year when the country fair lunatics are out and about and the ale is flowing. 

Be careful out there.


6 comments:

  1. This is inaccurate - James Draper was not a founder of Shopwave. He was an employee that left after a short time at the co to found Bidstack. The Shopwave founders are still working full time at Shopwave.

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    1. Apologies - now corrected. He made a statement about Shopwave in his Bidstack pitch which I misinterpreted.

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  2. Draper does not run Shopwave as per the article - he was an employee and has had nothing to do with the co for over 3 years!

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    Replies
    1. Apologies - now corrected. He made a statement about Shopwave in his Bidstack pitch which I misinterpreted.

      Delete
  3. This looks like an RTO surely that's really good for investors?

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  4. It looks like the cln is £400k, not that the BidStack equity has been purchased for that fee

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