Gartenzwerg raised £260k on Seedrs in February 2018. Now it has written to these same shareholders to say adieu and sorry. Ahhh. And if you are lucky you can still give them your money via their active Indiegogo Campaign!! Backers are not amused.
Of course the £260k was well spent and there is the stated hope of a phoenix post liquidation - is stating that even legal? Acting with the intention of ditching creditors via an administration and liquidation is not allowed. But seriously, who is going to notice. HMRC - no way.
They are currently still on Indiegogo, despite telling backers they are not now going to get anything, where they have pre sold £36k of their product and the page seems to be still taking cash in 'In Demand' mode, which has a certain irony. Read the updates and comments here. All sorts of excuses about how expensive the moulding would be - didnt you think of that before you took other peoples' cash?
Here is a Q&A from 5 months ago - remember this customer has already paid - :(((
I am not away on holiday in Dec. Can I get it delivered in Jan (already ordered)
Hi Leanne! Yes, of course, no problem. :)
It is a free for all. We advise companies to help themselves to this free money whilst it lasts. Investors will not be let down time and time again without some reaction.
Interesting one this. Directors gave solvency statements recently and reduced capital of company. I would assume some thing as fundamental as capital reduction would be a reserved matter under the Investment agreement between Seedrs Nominees and the company to 'protect' the minorities that Seedrs Nominees look after. To go from a capital reduction (who and at what price) declaring debts can be paid for 12 month to liquidation seems sticky ground and will see if the administrator/liquidator has balls or is just collecting his fees. I am sure the 'crowd' will be interested to understand how they got the 'protection' that VC's and other professional investors normally get when looking at the last six months of this.
ReplyDeleteAlso have to wait for Admin filings. Most Admins just collect fees in our experience.
DeleteI think it would also be interesting to know if any of the 100k of other loans in the 31 August 2018 accounts was repaid or any of the directors loans were repaid out of proceeds from the crowd. I did understand that this 100k was to be converted to equity at a discount and was one question raised on the forum as part of the raise on Seedrs
ReplyDeleteThose details are not out yet but agree it will be interesting. Creatinly there is no filing of the £100k being converted and the company has no charges O/S according to CH.
ReplyDeleteDuring the pitch on Seedrs they did confirm that the 100k would be converted at preferential terms as part of an earlier agreement and that induced other investors as this guy followed up. Now if that was hype and not converted that is misrepresentation with the aim to induce investment. I guess that doesnt matter for these promoters with the light touch FCA regulation
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