Nope.
Its a perk from this round only.
There are āperiodic updatesā for those that invest in this round, anything from Ā£1-Ā£10k.
Sure, but that makes no sense. I can understand not getting any more swag, we got it all when we previously invested. But not being shared the information just because weāre not doubling our investment? Are previous investors less valuable to the company?
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I think the information being shared would be financials/sensitive info and thatās the reason it doesnāt make sense to share to 13,000 investors in Freetrade.
As such they have to draw the line somewhere, so I donāt really have an issue with it personally. Its not like they will be reducing existing comms.
P.s. I wont be investing Ā£10k+ this round
Of course, and thatās fine, donāt allow every investor regardless of size access to the information.
However, if two investors have the same number of shares from different rounds, they should have access to the same information.
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From the Crowdcube forumsā¦
Please can you clarify if this round is part of a larger round and if it will trigger the conversion of the convertible?
Thanks
Thanks for your question. On this point Iām pleased to confirm that the CLN that we raised through Crowdcube last year will be converted early as a result of this round, if Crowdcube Nominees Limited as the holder of the CLN decide to do so. We have agreed with Crowdcube that they will decide to convert, as this is the best result for underlying crowd investors.
Those underlying investors will shortly receive notification of the intention to convert their investment into shares. The conversion will occur at a 20% discount to the 2023 fundraise or Ā£2.08 per share and will happen when the shares under this round are issued.
This conversion will happen on the same terms that apply to the CLN that we issued to institutional investors in 2023.
Best,
The Freetrade Team
On the good news scale, 1 -10, what level of good news is this?
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Very good news for those.holders
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I got approx 7000 shares in previous rounds (I think 4&5)
I donāt know about the effects of share dilution in this case
But as the valuation of this round approx Ā£2 a share does that mean my 7000 shares are worth approx 14k in theory or have they been diluted? Advice appreciated
The share price is just over Ā£2, so your value is circa Ā£14k
Diluted just means your ownership % of the company decreases when new shares are issued
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The share price is Ā£2.60.
So Ā£18,200, not 14k.
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Factor in the preference shares, and itās worth about Ā£2 at current valuation. Theyāre being very quiet about that.
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@acamp - is the valuation a fully diluted valuation inclusive of all warrants, options etc etc?
Did Freetrade mention why theyāre crowdfunding?
Why are they only raising Ā£1M for a company their size? Wouldnāt they be raising more?
They need the money to survive and expand.
Their not, theyāre at Ā£1.75 million at the moment. Iām sure they are aiming for as much as possible. Its a tough market at the moment. Its highly unlikey they will reach the lofty heights of previous early rounds.
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The target of 1M is just an indicative number ( in marketing terms, it is better to say that your campain was overfundend). However, from their pitch deck they mentioned that their ārealā target for the base case scenario is 2.5M (vs 7M for the growth scenario).
The money raised will be used as an extra push towards growth and profitability. However, they stated that all the money they raise comes as an extra because they will be able to turn profitable indipendently from the founding campain.
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Hey @Coolsmp
On your first point itās important to emphasise that this is not the case. Our first update on the pitch gives some more detail, but we donāt need to raise further money to reach profitability.
Mayā23 closed with us achieving (0.4m) EBITDA and our corporate cash sat at Ā£20.8m.
The raise is to provide additional support for ramping up growth and developing new features.
@FRusso - those base and growth fundraise targets are for the entire calendar year '23. For context, we raised Ā£5m from existing investors in January of this year. So Ā£2m in the Crowdfunding would satisfy the base case we projected for '23 at least.
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Can I please ask, when will it be āfully fundedā?
Sorry if thatās a dumb question or answered elsewhere.
Fair point, Iāve struck through my original wording.
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Whoops yes youāre right. I based my answer off the comments above! Have changed.
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I have a question regarding the CLN. It was mentioned that some investors would get some preferred shares(limited number available). How is that distribution being made? Is it by investing order or all the crowdfunding Investors will be granted with the preferred shares? Are these preferred shares Series B shares with voting options?
It was one off the reasons why I invested in the CLN.