Hi Geraint.
Question for Adam:
Can you indicate whether the Crowdcube success fee of 5% will apply to this round? The wording on their website seems ambiguous.
Crowdcube’s success fee only applies to profits made on investments in businesses that opened to investment on or after the 1st of April 2021.
Will the success fee apply because Freetrade opened to NEW investments after April 2021, or is it grandfathered in because it is a business that opened to investment (through Crowdcube) prior to April 2021 - ie. Annual funding rounds since 2016.
If it does apply to this round can you indicate how this will be implemented and segregated from investments made in previous rounds. Will this mean that new shareholdings will be through the Crowdcube Nominee so that they can control the distribution and withhold the success fee?
And follow-up question if the success fee does apply - would the success fee be calculated at IPO or at ultimate date of sale of your shares if held beyond an IPO.
Perhaps a question for Crowdcube themselves, but hopefully Freetrade have already had this discussion and can share some detail.