For all the use Stakis was - it may as well have been a plant shop. Evros Stakis, the founder and son of the late Stakis empire builder Sir Reo Stakis, took £101,000 off Crowdcube investors in 2013 and spent it - but he never opened a single nursery.
This is what Evros said about the company's exit plans on the Crowdcube, FCA regulated, platform -
The Exit Strategy
In terms of exit, Investors
should be encouraged to take a 3-year view given the Seed EIS cover, which they
would forfeit if they exited within that period. Having said that, once it has
built a story and track record, the Company intends to list within the next
twelve months on the London-facing Danish exchange, GXG Markets. That, of
course, does not preclude a trade sale in the interim to a recognised player in
the childcare sector.
Yet another one to cross off my list.
To my mind this one has a bigger stench about it than the dozens of ECf companies that use massively inflated forecasts and then underperform. At least those companies trade - they attempt to grow. On the face of it, and perhaps I'm missing something, to take in funds and fail to open a single nursery verges on the criminal and is an outrage that deserves some pretty close scrutiny from those that invested.
ReplyDeleteCouldn't agree more. The investors need to take a closer look at the accounts, if any, and see where the money went. He needs to be held accountable.
DeleteWild.
ReplyDeleteCrowdCube is a terrible platform. I don’t understand why people keep on using it.
Fool me once shame on you, fool me twice...