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Post by mrclondon on Feb 20, 2015 20:52:49 GMT
Thsee are all great news for existing shareholders. But we have been offered a convertible and so will missout on any growth in the business occurring before conversion to equity  Not sure I understand your reasoning. The conversion is very likely to be in the next 4 months (Q2 2015), and we are being offered 10% discount to conversion value for 12 months (increasing to 20% discount over the following year). Few of the initiatives announced recently are going to have a material impact on AC's revenues in the next 4 months as they will all take time to come on stream, e.g. December's invoice discounting announcement is unlikely to see retail investor participation in the next 4 months.
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Post by chris on Feb 21, 2015 9:45:28 GMT
Thsee are all great news for existing shareholders. But we have been offered a convertible and so will missout on any growth in the business occurring before conversion to equity Not sure I understand your reasoning. The conversion is very likely to be in the next 4 months (Q2 2015), and we are being offered 10% discount to conversion value for 12 months (increasing to 20% discount over the following year). Few of the initiatives announced recently are going to have a material impact on AC's revenues in the next 4 months as they will all take time to come on stream, e.g. December's invoice discounting announcement is unlikely to see retail investor participation in the next 4 months. There's also a valuation cap.
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Post by stuartassetzcapital on Feb 21, 2015 11:40:25 GMT
Thsee are all great news for existing shareholders. But we have been offered a convertible and so will missout on any growth in the business occurring before conversion to equity The financials available on request via the Seedrs Q&A show large upside potential in the future. The 10% discount against a conversion price isn't a bad return for what should just be a few months before conversion too. If the cap kicks in then the discount is even bigger. Hope that assists.
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max
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Post by max on Feb 21, 2015 12:51:56 GMT
Thsee are all great news for existing shareholders. But we have been offered a convertible and so will missout on any growth in the business occurring before conversion to equity Not sure I understand your reasoning. The conversion is very likely to be in the next 4 months (Q2 2015), and we are being offered 10% discount to conversion value for 12 months (increasing to 20% discount over the following year). Few of the initiatives announced recently are going to have a material impact on AC's revenues in the next 4 months as they will all take time to come on stream, e.g. December's invoice discounting announcement is unlikely to see retail investor participation in the next 4 months. Sorry but where it is said that conversion will occur in 4 months? My reasoning is very simple. The proposed agreement entitles AC to choose the conversion date at its convenience within next 2 years. Yes, with some limits, ie conversion triggers, additional discounts after 1 year, cap of evaluation at 60M. I feel evaluation cap is really generous, ie equals AC current loan book. Hence, AC can wait the most favourable time for conversion. In my opinion that is when company value is close to 60M cap, or additional funds are needed via equity rise. I will make an investment, but I'm not sure how much to commit yet. It is all down to the uncertainty on the conversion date.
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Post by mrclondon on Feb 21, 2015 13:01:14 GMT
Sorry but where it is said that conversion will occur in 4 months? If you read through the Q&A on the seedrs site right the way through Stuart has answered that point several times, each time indicating short timeframe. His first answer included "We are in negotiations over the balance of the equity and the 24 month longstop is just that - we are working to this April." (Hence the relevance of the subsequent questions as to which personal tax year it will fall, the answer being next)
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max
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Post by max on Feb 21, 2015 14:33:20 GMT
Sorry but where it is said that conversion will occur in 4 months? If you read through the Q&A on the seedrs site right the way through Stuart has answered that point several times, each time indicating short timeframe. His first answer included "We are in negotiations over the balance of the equity and the 24 month longstop is just that - we are working to this April." (Hence the relevance of the subsequent questions as to which personal tax year it will fall, the answer being next) I do appreciate AC goodwill and I do hope for a close conversion date as every other subscribers. However, Seedrs states very clearly at the top of the Q&A tab: "Important notice. None of the information in the Q&A, or requested by you from the entrepreneur, constitutes part of the campaign and it has not been reviewed or approved by Seedrs." My reading is that the close timeframe is at AC discretion. Nothing wrong with it, but investors should bear it in mind to avoid disappointments.
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Post by stuartassetzcapital on Feb 21, 2015 18:15:34 GMT
If you read through the Q&A on the seedrs site right the way through Stuart has answered that point several times, each time indicating short timeframe. His first answer included "We are in negotiations over the balance of the equity and the 24 month longstop is just that - we are working to this April." (Hence the relevance of the subsequent questions as to which personal tax year it will fall, the answer being next) I do appreciate AC goodwill and I do hope for a close conversion date as every other subscribers. However, Seedrs states very clearly at the top of the Q&A tab: "Important notice. None of the information in the Q&A, or requested by you from the entrepreneur, constitutes part of the campaign and it has not been reviewed or approved by Seedrs." My reading is that the close timeframe is at AC discretion. Nothing wrong with it, but investors should bear it in mind to avoid disappointments. That is a fair comment max. We are working tirelessly to grow the business, the recent deal flow is expected to grow our scale by hundreds of percent this year alone and the bigger we get the more and more people will want to invest in our equity to fund any further cost of growth and to help us capture market share. That process has already started and we regularly get approaches for the equity and we are in many discussions but we did promise many of our lenders access to any equity opportunity if it was possible to do so and this is delivering on that promise as once institutions sign up its probably to late to do this type of campaign. We have several institutional equity conversations in progress and the estimates of a few months for these are fair and transparent based on all current data available to us today but as you say no guarantees. Nonetheless the discount and convertibility address that risk reasonably well and others feel. I lead the equity side myself so you're hearing it from the horse's mouth as it were. Hope that helps.
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mikes1531
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Post by mikes1531 on Feb 21, 2015 22:27:25 GMT
I expect that this went out to all who have put offers in via Seedrs, but for anyone who hasn't yet...
I received the following email from Seedrs at 1939 today (Saturday)...
This seems rather premature to me, since we don't have to fund our offers until seven days after the funding reaches 100%.
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Post by solicitorious on Feb 21, 2015 22:47:57 GMT
They're just being prudent, I guess. Looks like an automated message. Will probably be fully funded by Monday.
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mikes1531
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Post by mikes1531 on Feb 22, 2015 2:12:14 GMT
They're just being prudent, I guess. Either that, or they're trying to get people committed. I think that once an offer is funded, and the campaign reaches 100%, that makes the offers irrevocable. I haven't a clue what would happen if a fund raising company were to close the offer as soon as it reached 100% and then some of the offers failed to be funded, leaving the offer below 100%. Maybe that's why 'overfunding' seems to be a common practice.
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tonyr
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Post by tonyr on Feb 23, 2015 15:12:00 GMT
The target was reached a couple of seconds ago.
Congratulations AC on a well run campaign, I hope you get some sleep tonight.
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unmadem
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Post by unmadem on Feb 23, 2015 15:15:41 GMT
344 investors (could increase depending on how much over funding allowed). Investments from over half a million down to a few £10 ones.
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baz657
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Post by baz657 on Feb 23, 2015 18:59:51 GMT
Pretty damn good result and one to hopefully inspire confidence in those that have pledged an investment. Must say a lot about the team already there. When will the next one be beginning stuartassetzcapital ?  |
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kermie
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Post by kermie on Feb 23, 2015 21:05:59 GMT
Indeed - hats off to AC. Stuart and co could have had a much quieter time of it and taken a wholly simpler path by fundraising through their own private network and by-passed all the hassle that the Seedrs route has no doubt entailed for them - so the gesture of offering an opportunity here for lenders is much appreciated. It's clear that a lot of prep work has to go into a campaign like this....more than just a few haircuts and Sunday suits!
Of course, a AC get a nice little bit of marketing this route too ;-)
However this pans out, it's going to be an interesting time!
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Post by stuartassetzcapital on Feb 23, 2015 23:56:39 GMT
Hi everyone and thanks for the support and comments. Still long days as we are now working on the institutional investment and another meeting held tonight.
We are going to announce tomorrow that we are extending the Seedrs campaign to £3m due to weight of demand from our lenders and followers and will take this from the institutional allocation which reduces them to £3m.Hope this answers everyone's questions over whether we will accept overfunding and thanks again.
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