Justpark have asked shareholders to click a box to allow them to raise loan finance. Which is fine apart from the total lack of information, the chance to ask questions in a forum and the information that is supplied being less than symmetrical.
Justpark are a regular on Crowdcube, having raised over £6m so far. Now they are telling shareholders that bank finance is a cheaper way of funding and it will have less impact vis a vis dilution. Eh? Well if you read the notice sent out to SHs, via Crowdcube, it goes on to explain that the bank in question will have rights to shares as well. So that isn't equity finance and wont that cause dilution? No mention of the price paid for these shares is given. Nor is there any mention of the amount being raised.
The company, who have struggled since 2014, are now making progress and certainly reviews have improved in the last year. However I'm sure investors will want to know why they chose to share the B2B revenue metric and not share the parking revenue metric? And guys using percentage increases is really pointless and can be misleading. A Year on Year increase from £10 to £20 is a 100% increase but it's not something to celebrate.
As a general rule, we always tell people that more often than not, it's what the company doesn't tell you that is important, especially if they start using odd metrics and percentage increases with no base figure. Just an observation we have come to from 8 years of looking at ECf pitches.
Losses to date have been large. But that has all been put down to gaining traction. That is the new normal.
We think your shareholders deserve better - they have after all put you where you are now.
ECf.Buzz will help investors get the real information so that they can make an informed decision rather than guessing.
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