Looks like all their funding options ran out and so they are now out of cash…
Could you paste the email here if you dont mind.
I haven’t received any communication yet.
Here goes;
“ Dear OR Productivity Shareholder,
It is with deep disappointment that I write to advise you that Freehand 2010 Limited was placed into Administration on 22nd November 2022 and consequently the Board took the decision to place OR Productivity Limited into Administration on 23rd November 2022. The Administrators of both Freehand 2010 Limited and OR Productivity Limited are Anthony Cork and Stephen Cork of Cork Gully LLP of 6 Snow Hill, London EC1A 2AY. They will provide you with more information as the process progresses. To answer some of the many questions that you will have I would like to provide you with some more background information here.
The board has been working closely with our new CEO Kurt Goos to secure the funding needed to support the company and the launch in the US. As described in our last investor update we have been pursuing a plan to raise a bridge round funded by investment from both the US and the UK. The board has been tracking this process weekly with a solid list of both individual investor and institutional funds in the US. Over the past few weeks as our deadline for investment approached, the list of potential US investors decreased significantly, with most either wanting to see significant US sales and activity prior to investment or looking for more conservative investments given the current economic environment. The economic environment concerns echo those that we have heard in the UK as well. The final short term US funding option passed last week.
Throughout this process the Directors have continued to support the company through direct investment of our own funds to increase the runway, continued outreach to new UK investors and the exploration of alternative funding vehicles to lower the risk for investors. With the loss of the last prospect for immediate US investment, the board worked with management to determine whether there was a business plan for which the funding requirements could be supported through existing shareholders and contacts. As the company has already done two ASA rounds this year, the key question for the board was whether there was a funding amount achievable in the short term that would provide enough runway for the company to hit the product revenue and utilisation milestones that will allow it to close a full round. Unfortunately, the conclusion of this deep dive was that there was not a credible path forward given the potential investment amounts available from existing shareholders, the time available and the funding requirements of the business. This is particularly frustrating as we continue to see signs in the early customer interest in the US, South Korea and elsewhere that there is significant opportunity for the Freehand product.
I would like to thank all of our investors for your support over the years. I am sorry that we will not be able to deliver on our vision for Freehand, but I can assure you that the board is committed to working with CorkGully to find a buyer to secure the best return for our creditors and, if possible, for shareholders and see that this product which could benefit so many surgeons around the world continues to be available. The Administrators intend to offer the business and assets of the companies for sale. Please forward any expressions of interest in purchasing the business and assets of both companies to the following email address Freehand@corkgully.com”
Very annoying as many previous updates were very positive…quite a sudden fall from fame.
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Another one down the tube…
Fitch Brew Co Ltd (the ‘Company’)
At the meeting of the Board of Directors held on 23 November 2022 it was decided that the Company, by reason of its liabilities, cannot continue its business. Accordingly, the directors resolved to recommend to the Company’s shareholders that the Company be wound up voluntarily.
So I got £10.85 back on £40 invested in Notes, this is one of my best returns to date (I wish that was a joke but it is not).
All-by-mama just fell over as well, they have basically been silent since I invested in Feb 2017. Tyne Bank Brewery a couple of weeks ago too.
My tally is now 92 invstments (which includes some follow ups), 38 remain alive, with 3 postive exits. Some of the 38 are effectively dormant: Ikee, Local vets. I have lost track of what happened with Meem and Solid Labs years ago.
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Notes still operating, was it sold cheap to another company?
Stay well away from drinks companies,soft and alcohol,property,restaurants.
In fact after reading the post above @philgq maybe best to stay away from crowdfunding non-stop.
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Found a relevant news article: WSH Group acquires London’s Notes Coffee Roasters & Bar - World Coffee Portal
Presumably, based on the £10 return on £40 invested, they’ve been acquired for around £2.5m in cash. I imagine there’s more to the deal that will go to the founders by way of earn-outs, perhaps equity in wsh, given it’s been acquired to continue operating (“…both of whom will continue to lead the company post-acquisition…”).
Looking at the shareholding and campaign, from the acquisition only, the founders are walking away with:
Fabio Ferreira: 6.5% = ~£160k
Robert Robinson: 6.5% = ~£160k
Alan & Marion Elizabeth Goulden: 15.64% + 0.21% = ~£400k
Edward & Lynda Halfon: 15.14% = ~£400k
Plus the early, pre-crowd, investors:
Paul Kempe: 15.36% = ~£400k
Francis Norton: 7.62% = ~£200k
Bruce Golden & Michelle Mercer: 7.32% + 0.23% = ~£200k
Probably not the exit the founders and investors hoped for, but still better than the crowd who are getting 20p on the pound. Granted, they all appear to be people who are wealthy independent of Notes (some generationally, some earned) so they probably don’t care much. The crowd loses again!
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Yes, it was sold as a going concern, just for less than has been invested in it to date.
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Some companies have done well for me, and overall I am up but appreciate this is not the case for all, perhaps most. Crowdfunding is not for the masses, but they make you think that it is because you can get involved from as low as £10. It needs much more regulation.
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Ha it’s funny because I would agree with all of this advice but then when I look at my crowdfunding portfolio it’s almost all drinks companies. Something I don’t own any listed equivalents of.
That said they are all solid companies like Square Root & Five Points that I at least have some kind of personal connection to so I feel good about my investments overall.
I haven’t had a crowdfunding exit yet, but I’ve also not had a failure. I’ve only been doing it for a few years but contrary to the popular “it’s a numbers game” approach. I don’t make that many crowdfunded investments. I guess I’ll have to give it 5 years and see if that was still a smart move…
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I did my taxes two weeks ago (mostly claims on failed crowdfunds) and there have been three more failures in the meantime. Pretty grim for all at the moment.
Just doing mine now - have you had to repay any EIS/SEIS for any failures within the three year window?
Have you just declared the claims on the self assessment return ?
I have in the past had to (in theory) repay EIS, but I did it as an amendment to my self-assessment, and at the time I had additional EIS to claim, so I didn’t have to hand anything back, as such.
Yes, on the self-assessment, you claim a loss as if a negative capital gain, so it’s in the capital gains section (caused me a right pain the first time, not knowing where to put it), but it’s straightforward enough and it even gives a worksheet-type aid so you can do each one individually and it adds it all up for you. I’ve always just given dates on which I found out the shares were worthless, rather than waiting for the company to be dissolved, and they’ve never questioned that, though obviously they could always ask for evidence.
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Thread went in administration today. They raised £2m at £68m valuation few years ago on Crowdciube
It seems the founders of Thread will be working for M&S. Just asking: is not a conflict of interest?
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Probably got a nice signing bonus in the process to make up for the heartbreak.
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This is a US one but a bit confused about this update I spotted about NowRX; NowRx’s Pharmacy Patient Business Acquired by Alto Pharmacy | Business Wire
No investor comms yet.
@TickTock