Issuing Shares after failure to hit Crowdcube target
September 4, 2019 at 8:42 am #10137mattwParticipant
I know that the general solicitation of investment in private companies is an area where you need to be careful as there are rules governing this. I also understand that platforms such as Crowdcube or Seedrs deal with the regulatory side of an offering of shares in a private company.
So what would be the situation where a Crowdcube campaign doesn’t hit the target, but the investors who did pledge, are really keen to continue anyway? Whilst Crowdcube state they are unable to proceed where the pitch hasn’t reached target, what would be the legalities involved for the business concerned in proceeding anyway with interested parties, outside of Crowdcube? (putting to one side anything in Crowdcube terms and conditions that try to restrict this). Crowdcube already qualified them as investors when they made the pledge with various questions etc. (as I have previously invested on the platform, so I’m aware of the procedures investors are taken through)
I would be really interested in this situation as I could be faced with it!September 4, 2019 at 9:44 am #10139Jonathan LeaKeymaster
Other than anything within the Crowdcube terms and conditions, I’m not aware of anything that will restrict or prevent you from raising money from the interested investors who Crowdcube qualified.
We have previously assisted a company raising money outside of Crowdcube when they had earlier failed to reach their target on the platform. The investors signed subscription agreements that clearly outlined the exchange and completion process and included relevant disclaimers and statements to limit any liability, while we also advised on a constitution (new articles and shareholders agreement) that the new shareholders became a party to.
Please do get in touch in due course (via our contact page and form) if you would like to schedule a no cost no obligation call to discuss this further.
JonathanSeptember 4, 2019 at 11:03 am #10141mattwParticipant
Many thanks Jonathan – I’m in the car for most of the rest of the day, but I’ll look to get in touch tomorrow.October 3, 2019 at 9:00 am #11004pripankajParticipant
thanx for sharing…..January 19, 2020 at 4:56 am #14337Manish PackersParticipant
Are you Looking for Top packers and movers in Indore? Our list of Best movers and packers in Indore will help you in your next shifting. We match your requirements with the professional relocation service providers in Indore. All of our listed packers movers in Indore are verified and trusted to hire and enjoy hassle-free relocation experience. Explore all shifting specialists, hire cheap and best from them, and request quote. They have experience in handling all sorts of moving i.e. household shifting, office shifting, vehicle transportation in Indore. Shift with assurance and convenience with our associate packers and movers in Indore. We offer a complete packing and moving solution in Indore with the help of reliable relocation companies.
- You must be logged in to reply to this topic.