We are not entirely sure what this means for the 66 Crowdcube investors who put in £130k in 2015 at a valuation of over £1m.
Addendum - We got this horribly wrong! Apologies, my stockbroking career was short and ended when I went to watch the Grateful Dead in Buffalo without permission. So it now appears that the CC shareholders exchanged their shares for new Bidstack plc shares at a ratio - see comments for details. 66 CC shareholders who invested £130k in 2015 have seen a ~return of 5X if they trade their shars out at 6p - current price is under 6p. Which is good - its not quite carling but it is good.
We wrote about them before here - not in very glowing terms. Maybe some hat eating to do but the figures will only make sense after tomorrow.
More to come. Anon if you want to post a polite comment on Bidstack this is the place to do it - not on a post about something completely different. Thanks.
PS - doing a little bit of casual digging - it appears that the smallest SHs in Bidstack Ltd - who came on board around the time of the CC completion, own 122 shares each. The minimum amount that you buy on CC is £10. But the newco IPO share price is 6p. So 122 shares would now cost £7.32 - which suggests that CC shareholders are now considerably worse off than they were in 2015. It's not scientific but I think the theory is correct. Anon would you like to comment?
PS - Ann Gloag - one of Scotland's richest women, has purchased over 3% of the new Bidstack plc today - a transaction involving almost 6m shares. We assume this part of the £3m plus IPO. Is she a good judge? Price currently struggling at around 6p.
PS - doing a little bit of casual digging - it appears that the smallest SHs in Bidstack Ltd - who came on board around the time of the CC completion, own 122 shares each. The minimum amount that you buy on CC is £10. But the newco IPO share price is 6p. So 122 shares would now cost £7.32 - which suggests that CC shareholders are now considerably worse off than they were in 2015. It's not scientific but I think the theory is correct. Anon would you like to comment?
PS - Ann Gloag - one of Scotland's richest women, has purchased over 3% of the new Bidstack plc today - a transaction involving almost 6m shares. We assume this part of the £3m plus IPO. Is she a good judge? Price currently struggling at around 6p.
Looks like on CC Bidstack raised £130K-odd for 12% equity. So since Kin have paid north of £6M this could finally be a genuine success for CC. Would it be their first exit at a >5-fold multiple? (if the figures indeed stack up)
ReplyDeleteJim - it is not that simple. My guess (at this stage) is that CC shareholders had to sell their shares for 6p - as per official statement. Som SHs had 122 shares from the CC round and a we knwo that the min you can buy on CC is £10 - that means these were worth 8.196p when purchased in 2015. What the RT paid for Bidstack is not the amount handed back to SHs. So no this is not a return for SHs but yet another loss. Which might explain why CC have not been out there with there megaphones.
DeleteI heard they make 5 times their money but will be looking to see tomorrow aswell. Anon
ReplyDeleteIt is not that simple. The price paid dos not equate the money given to SHs. 12m existing shares out ~15m issued in Bidstack Ltd where purchased for 6p each ie the IPO issue price. See post for more info.
DeleteShareholders received 43.5p per share albeit in the form of shares in the new company. Equates to 7.5 new shares per one old share. At 6p that would give a multiple of around 5x on the initial investment.
ReplyDeleteThat's not how it works. The current share price has nothing to do with the price the shares were converted at during the RTO the 6p is just a legacy of the original Kin share price. Kin will have purchased at a set value which is in the admission doc. I think from what I've seen 5X for investors sounds about right but they could make more potentially.
ReplyDeleteIm happy to accept Im wrong here - but how does what you say tally with the fact (as stated in the Admissions Doc) that over 12m of the then 15m Bidsack sharecap, were sold to raise £.77m or sold at 6p each? Im guessing CC SHs were in that 12m - no?
DeleteI can confirm, 5 x return, 10 x if you claimed SEIS relief.
ReplyDelete