Ikee raised £72k from Crowdcube investors in 2015. The last update we have seen was for Q1 2017, telling the unfortunate SHs that they had had to start again. Their gadget didnt work.
The have just filed accounts for YE 18. They have no shareholder funds - or no record of the money invested by Crowdcube investors. If you look back there is a filing detailing the investment in 2015 but it has been incorrectly filled out. If investors' money is in these accounts it has been filed under Creditors, where a similar sum is noted as simply 'other creditors'. Of course these are not creditors at all; they are shareholders.
We were contacted by a shareholder - who had paid for shares. He wanted to know what was going on, so he asked us. It appears that the company has on issue over 1m shares, of which Crowdcube, who always purchase £10 worth, own 11, according to filings. So they own 11/1000000 of the company. Having paid £10 for the 11 shares, that would now value the company at £1m. Unless of course the dilution meant it was exactly the opposite. Of course the company is not worth £1m. So each share must be worth a fraction of the £1 it was bought for. You might be surprised to hear that the founder owns 9,600,000 of these shares. We suspect that this is a catastrophic filing error - that would at least be consistent with the accounts.
On checking - which took sometime - the company issued by special resolution in August 2015, a share subdivision for their £1 ords - making them £0.001 shares. This wasnt then filed until November 2015, so after the Crowdcube raise. So shares issued to Crowdcube investors were falsely filed as being worth £0.001 each - Crowdcube's £10 buying them a value of 1p. This would explain things. It does not explain however, how we have company directors who appear not understand how to carry out their legal duties. And Crowdcube!!! Somehting we have been banging on about for 5 years or more. This is certainly not the first case we have found.
As to its product?
Enough said. We have mentioned these guys before here
ECf needs to do better than this. Where was the Crowdcube DD on this one? Certainly the 2017 update suggests that nothing had been trialled.
The founder has been involved in a plethora of companies - many of them now closed or dormant. We found it hard to find one that looked like it was successful but to be fair it can be hard to tell. Prolific certainly. His FB and Instagram page paint a picture of the high lifestyle to which successful entrepreneurs are entitled.
In this case, Crowdcube put this company through its incubator 'service'. Well done guys.
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