Bidstack delivers 5X return for 66 Crowdcube investors.

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.

Here we go the round the ............... Bidstack reversed in to Kin Group.

So Bidstack. Founded by the same guy, James Draper, who was Head of Commercial at Shopwave (according to Crowdcube). Both used Crowdcube. Bidstack was valued on Crowdcube in 2015 at £1.1m. 

Bidstack has now been reversed into Kin Group - a shell co listed on AIM. It has been termed a reverse takeover. Kin had to take over someone by August this year or lose their AIM listing. The deal is still not completed.

It appears from said deal, that Kin are paying £400k for the entire share capital of Bidstack by way of investing this sum in the company. We are not sure what sort of accounts Bidstack have but from previous filings it doesnt look too pretty. Bidstack have been playing ping pong with their accounting dates since their Crowdcube raise. 

The other company Draper used to work at, Shopwave, had projected net profits on Crowdcube of £1.6m for 2016 but only managed to bring in losses of £50k. Silly old projections. 

Crowdcube investors, there are only 66 of them, will receive shares in Kin Group. Their shares are currently suspended.

This story reminds me of a few other recent events involving Crowdcube investors and steam rollers. I suppose it is that time of the year when the country fair lunatics are out and about and the ale is flowing. 

Be careful out there.