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Post by pepperpot on Feb 24, 2015 12:09:05 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. Does that mean I can get away without funding my bid till the offer is closer to £3m?
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Feb 24, 2015 18:40:38 GMT
I just received the update email from Assetz:
Update - Assetz Capital Equity Launch vis Seedrs
I had to laugh because my Thunderbird email had inserted a big red warning saying:
I wonder what words triggered that!
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Post by stuartassetzcapital on Feb 25, 2015 10:09:57 GMT
In answer to a number of people's questions :
"The due date for investments to be paid up is 7 days after the campaign is 100% filled which is Monday 2nd March.
After that the campaign can close at any time and any unpaid investments will be cancelled by the Seedrs system automatically so please make sure that any new investment bids are funded on the same day now that we are in overfunding status in order to avoid disappointment."
Hope that helps explain the Seedrs system.
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acorn
Posts: 118
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Post by acorn on Feb 25, 2015 10:22:47 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. Does that mean I can get away without funding my bid till the offer is closer to £3 million. Edit: deleted after seeing Stuart's post.
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Post by bracknellboy on Feb 25, 2015 22:23:27 GMT
stuartassetzcapital: ..The original Seedrs raise mentioned nothing about a £25m valuation floor if no qualifying series A round had been achieved at the 24-month long-stop date. While I understand it is very likely a series A round does trigger the converts in 2Q15, this does create a very high valuation floor in the scenario where AC is probably failing (if you can't trigger over 24m then something is probably very wrong). I do not see how such a high valuation floor aligns the interests of new shareholders with the founding shareholders. Disclaimer: I've not read the newly posted term sheet so just reacting to the information in the post. I'm not sure this is restricted to a 'probably failing' scenario. If the series A round initially fails, the business could later decide not to proceed with a futher equity raise i.e. if cash flow/profit and required investment meant it wasn't justified. In that scenario the long stop position could be triggered ? Not suggesting that is intent, but 'twixt now and then...' Or have i misunderstood ?
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Post by stuartassetzcapital on Feb 26, 2015 11:08:36 GMT
stuartassetzcapital: Does the term sheet (on the Seedrs website) also apply to direct investors? Also why has a valuation floor at the long-stop been been introduced at this point? The original Seedrs raise mentioned nothing about a £25m valuation floor if no qualifying series A round had been achieved at the 24-month long-stop date. While I understand it is very likely a series A round does trigger the converts in 2Q15, this does create a very high valuation floor in the scenario where AC is probably failing (if you can't trigger over 24m then something is probably very wrong). I do not see how such a high valuation floor aligns the interests of new shareholders with the founding shareholders. EDIT: I am not implying that the founders' should not have some ratchetting anti-dilution provision but I do think that such provision needed to be defined before the convert raise started. Some of us have been asking to see a convert termsheet since Friday 13 February with no response from AC until today. For it to now appear after the initial £2m raise has been completed is very poor practice. Thankfully I have not wired across my funds since it does change the value arguments to a modest degree around investing in AC. Hi Yes it applies to all investors equally, no preference given by route or type other than our own direct investors get us lower fees. The floor has to be there for long-stop date purposes and £zero isn't sensible and the £25m is substantially below an advanced negotiation with an investor last year with a much higher valuation than that. Given the valuation of businesses like ours has been fairly stable at 1x long term loan origination value its not something unusual or unsubstantiated. There isnt a single negotiation on value from an institutional investor sub this figure or anywhere near it either. Hope that explains it.
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Post by stuartassetzcapital on Feb 26, 2015 11:11:05 GMT
stuartassetzcapital: ..The original Seedrs raise mentioned nothing about a £25m valuation floor if no qualifying series A round had been achieved at the 24-month long-stop date. While I understand it is very likely a series A round does trigger the converts in 2Q15, this does create a very high valuation floor in the scenario where AC is probably failing (if you can't trigger over 24m then something is probably very wrong). I do not see how such a high valuation floor aligns the interests of new shareholders with the founding shareholders. Disclaimer: I've not read the newly posted term sheet so just reacting to the information in the post. I'm not sure this is restricted to a 'probably failing' scenario. If the series A round initially fails, the business could later decide not to proceed with a futher equity raise i.e. if cash flow/profit and required investment meant it wasn't justified. In that scenario the long stop position could be triggered ? Not suggesting that is intent, but 'twixt now and then...' Or have i misunderstood ? If we decided on purpose to not raise the next investment to trigger the conversion we would have to be, frankly, mad ! This is because the longstop date would then come and we would issue a lot of equity at an artificially low valuation. We are in negotiations right now so we are talking about a scenario Seedrs quite rightly need to include but it isnt going to be reality. Hope that helps.
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Post by bracknellboy on Feb 26, 2015 11:15:34 GMT
The problem with writing stuff late at night..... :-)
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mikes1531
Member of DD Central
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Post by mikes1531 on Feb 26, 2015 12:57:38 GMT
I see that the Seedrs investment total is less now than it was at about 0400 today. I presume that means some potential investors have cancelled/withdrawn their bids/pledges.
Is this a common occurrence?
Might there be another explanation?
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Post by stuartassetzcapital on Feb 26, 2015 15:43:36 GMT
I see that the Seedrs investment total is less now than it was at about 0400 today. I presume that means some potential investors have cancelled/withdrawn their bids/pledges. Is this a common occurrence? Might there be another explanation? Seedrs tell me that around this time when investors need to settle up their balances (after going through the target) there are lots of adjustments to bids - we have also filled exceptionally quickly and I think the need to fund those bids so quickly caught a few people out. When their cash arrives and if the campaign is still open then they will be back to bid again they tell us. Lots more bids coming we hear so I expect £2.5m soon enough.
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capucino
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Post by capucino on Mar 3, 2015 5:41:46 GMT
Any update on when we have to transfer the funds? (including direct investors) especially that now it seems the 3m investment wont be filled that quickly.
Regards.
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mikes1531
Member of DD Central
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Post by mikes1531 on Mar 3, 2015 12:12:42 GMT
Any update on when we have to transfer the funds? (including direct investors) especially that now it seems the 3m investment wont be filled that quickly. : Can you please confirm that we will be given notice to settle our Seedrs bids before the offer is closed? I'm getting emails -- presumably automated -- reminding me that I haven't funded my bids yet and that I will miss out on this deal if it is closed before I fund my bids. I don't mind putting my money in a couple of days before the offer closes but, as it was with AC's first model, investing money and watching it sit earning nothing for a month or more when it could be employed profitably elsewhere in the interim is rather unsatisfactory.
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gt94sss2
Member of DD Central
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Post by gt94sss2 on Mar 3, 2015 15:05:25 GMT
Hi Direct Investor status is only really intended for larger investors who know us (mainly our lenders and few business partners) over £25k as its separate legal paperwork for each one rather than the Seedrs nominee account being set up with just one agreement for everyone. If it was a bit less and people were happy with doing their own paperwork directly with us then just talk to us (Mark Wardrop) if you haven't invested yet. its definitely not economic if its £5k or less as that's what the Nominee account is for - hundreds of people under one agreement and paying seedrs to do everything. We arent a PLC (yet) so don't want to have to manage a large direct shareholder base and its communications workload ourselves but a handful of larger investors no problem. its take a while to get the structure and reasoning clear and I apologise ! Apologies, if I am coming to this late in the day but I have a real dislike of nominee accounts but am new to this sort of early funding. Can I ask what level you would consider as a direct investor (>£5k=10K?) and how much paperwork is involved for an investor though I appreciate you don't want too many directly investing! - I only ask as, while a UK resident, am currently overseas and it may take a few days if stuff has to be posted back physically..
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Post by pepperpot on Mar 3, 2015 15:25:54 GMT
Hi Direct Investor status is only really intended for larger investors who know us (mainly our lenders and few business partners) over £25k as its separate legal paperwork for each one rather than the Seedrs nominee account being set up with just one agreement for everyone. If it was a bit less and people were happy with doing their own paperwork directly with us then just talk to us (Mark Wardrop) if you haven't invested yet. its definitely not economic if its £5k or less as that's what the Nominee account is for - hundreds of people under one agreement and paying seedrs to do everything. We arent a PLC (yet) so don't want to have to manage a large direct shareholder base and its communications workload ourselves but a handful of larger investors no problem. its take a while to get the structure and reasoning clear and I apologise ! Apologies, if I am coming to this late in the day but I have a real dislike of nominee accounts but am new to this sort of early funding. Can I ask what level you would consider as a direct investor (>£5k=10K?) and how much paperwork is involved for an investor though I appreciate you don't want too many directly investing! - I only ask as, while a UK resident, am currently overseas and it may take a few days if stuff has to be posted back physically.. It was mentioned, possibly earlier in the thread or on the seedrs Q&A, that £25k was the min to be a direct investor.
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gt94sss2
Member of DD Central
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Post by gt94sss2 on Mar 3, 2015 16:11:45 GMT
Apologies, if I am coming to this late in the day but I have a real dislike of nominee accounts but am new to this sort of early funding. Can I ask what level you would consider as a direct investor (>£5k=10K?) and how much paperwork is involved for an investor though I appreciate you don't want too many directly investing! - I only ask as, while a UK resident, am currently overseas and it may take a few days if stuff has to be posted back physically.. It was mentioned, possibly earlier in the thread or on the seedrs Q&A, that £25k was the min to be a direct investor. In the message I was responding too, Stuart seemed to suggest that their might be some (limited) flexibility on this..
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