I am carrying out a fundraising round for my startup and in order to get the correct percentage of shares I wish to issue to the investor I would like to issue new shares to myself at just nominal value, while the investor will be paying a premium of £100,000 for his shares.
Can this be done at the same time (at different valuations)?
The specific example is that the company has 100 shares in issue and in order to give the investor 25% of the company’s share capital we would like to issue 50 new shares (of nominal value £1 each) at nominal value to the founder, while the investor will subscribe for 50 new shares by paying the £100,000 premium.
Having checked this with an accountant, if the founder issues the additional shares to himself shortly before the second share issue to the investor then that is fine – the founder doesn’t need to issue them to himself at the same rate / amount.
However he cannot have it as the same share allotment, therefore there will need to be two sets of paperwork and this can be done with just one day apart between the different share issues.