Community Meetup: Crowdfunding special, Wed 17th Nov 2021, live in London + on Zoom

Had to cancel mine, sorry about it being so late and hope someone came make it instead

Will you be adding otc shares soon?

We saw stock discussion added foot lots of OTCMKTS about 3-4 weeks ago but they aren’t in the app yet. Are they coming?

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Will there be a recording made available of tonights AMA?

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Where can I find the link for In office meetup tickets for today - although I may be late.
I didn’t get a an invite or email notification

Hi,everyone, I am new here, I would like to ask how to join the zoom meeting tonight? thx!

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There will be a link to a zoom posted. Looks like the stream should start about 7 so plenty of time to get a cuppa a tea in.

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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.

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An extremely important question that needs a response I feel.

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I think you over complicating it. It’s fairly straightforward what it’s saying. For an investment in a business that launched a funding round from 1 April the 5% fee will apply to that specific round and future rounds. Past rounds are irrelevant.

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Can you confirm if there will be any EIS for UK investors and if not, why?

I wonder if this will put potential investors off

What will the proceeds of this round be used for and what difference in your plans will the extra funds make?

Are the SMT reducing their stake in the business?

It said not on the webpage. And there are several limits on EIS such as company size and number of employees that FT probably no longer meet is my guess.

I think @GMCay question is VERY important to be answered and he is not over complicating it.

Previous investors need to know clearly how this 5% fee will be applied and managed in the future in the case of an investor with shares obtained before and after this change.

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Yes, I’d like to know on which grounds Freetrade no longer qualifies/an official answer

These are questions for CC not FT but an IPO would be an exit so I’m fairly confident the 5% fee would end at that point even if you continued to hold your listed shares. I’m sure there are some experts here on IPOs but I think you have the choice to either sell your shares at IPO or hold for a minimum period after. Either way, it’s an exit from a CC point of view as the shares would leave the CC nominee and be held in your name or your chosen brokers nominee account - hopefully FT :grinning:

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where is the zoom link ?

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FT shares are already held in our own name. Which is why I’d like to know how new investments will be handled because of the success fee.

If held in a Nominee, that’s fine (although not really). But if still in our own name, the new B shares are added to the old B shares on the register and who keeps track of which have success fee and which don’t?

And as I control my shares into the IPO, are Crowdcube going to come knocking on my door asking for their 5%?

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So no EIS and a potential 5% fee from crowdcube on this round :thinking: