🚀 Crowdfunding graveyard ⚰️

Investing and Markets 📈 Startups Crowdfunding 🔨
679

Just got this investor update for NowRX…

Dear NowRx Investor/Shareholder,

You may have seen our recent announcement about Alto Pharmacy acquiring the business of NowRx.

We want to provide the following additional information to help answer some of the questions that have been recently raised via email, text and social media.

To further clarify, effective November 30, 2022, Alto Pharmacy acquired patient files for NowRx’s California business. And, effective December 1, 2022, Capsule acquired patient files for NowRx’s Arizona business.

Following an exhaustive capital raise process, NowRx reached a point where it could no longer adequately serve our patients given the resources available, and a distressed transfer of the patient files became necessary in order to satisfy regulatory requirements with the California and Arizona Board of Pharmacies, as well as the DEA.

Unfortunately, the current economic climate (war in Ukraine, high inflation, continued supply chain issues, Fed rate hikes, substantial loss of value in NASDAQ, etc) significantly impacted NowRx’s performance and ability to raise additional capital to support its business, ultimately requiring NowRx to take steps to ensure that the needs of its customers would continue to be served without disruption.

NowRx, Inc. still owns further assets, beyond the patient files previously discussed, including but not limited to furniture, equipment, vehicles, and our proprietary software (QuickFill), which we are actively trying to sell.

In the coming weeks, there will be further communication regarding the results of the aforementioned actions, additional financial information, as well as information about your shares.

We appreciate your continued patience throughout this process.

Best regards,
Cary

@TickTock Not great considering they are supposedly one of the highest raises on SeedInvest. I thought these guys would get bought but not at fire sale prices.

680

@Chrislewisuk Yep, it’s a sore one alright. I had big ambitions for this one and was sitting on a huge paper gain. We are all really starting to see just how vulnerable many of these start ups really are and operating on vapour and the crowd’s hard earned. Incredibly frustrating but also huge opportunities for companies with strong balance sheets and funding sources to gobble up those that are struggling and customers from those that have failed….

It sucks but I’ll take these hits on the chin, learn and go again stronger.

Good luck everyone :pray:t3:

10 Likes
682

There is a bit more information on Wild Beer Co in ‘Treated like a chump’: Wild Beer Co’s collapse leaves bitter taste for backers | Food & drink industry | The Guardian from Dec, 17th. The company promised to use raised funds for a brewery, but ended up buying equipment instead.

1 Like
683

Can anyone help me understand what a first gazette notice means for Crowdcube Nominees? Ar my shares in Freetrade and other investments i have safe? Any help in understanding this would be appreciated.

image
image960×2079 120 KB

684

This was the result of a delay in the confirmation statement. You’ll see that the strike off action has been discontinued. There’s no impact here on any shares held in Freetrade via Crowdcube nominees. Just as a reminder, only investments bought in the September 2022 round are held via this entity.

Best,

Alex

8 Likes
685

I like how the Crown can just claim anything :woozy_face:

1 Like
686

Looks like Freetrade Crowdcube quickly responded to the matter but should probably been on the ball more.

687

It’s Crowdcube not Freetrade.

688

Sorry. Yes typo on my part

1 Like
689

Thank you for the reassurance!
I don’t suppose you have any good news regarding Freetrade,anything will do. :+1::grinning:

690

That’s quite funny that everyone’s shares would go to the King if they left it 2 more months :rofl:. It’s like the accounting equivalent of forgetting to renew a domain name / SSL certificate.

2 Likes
691

Not a graveyard yet but have noticed that the CEO of Imagen Therapeutics who raised on CrowdCube has left in December and was removed as a director today from Companies House….never a good sign.

1 Like
692

Zapaygo has finally died. Was anyone else invested in them?

693

Yes, but only a tiny £250 fortunately… They actually never sent me an EIS3 share certificate, so I complained and they refunded my original investment last year. They were making noise about doing exceptionally well last I read, but isn’t that what most of these companies do when completing further fundraising…

694

This is a concern, they appeared to be doing well - let’s see what that means…

695

To me they never really seemed to live up to their own expectations. The app looked dreadful, no new venues listed on the platform since my investment back in 2019. Emails begging previous investors for more investment at a ludicrously discounted rate (I invested £350 in 2019, last year I was offered to invest something tiny like £10 and that would double my share count). Never got the share certificate for that either.

No news from management for a year. Most of the management team left last year as well.

Good concept, executed very poorly.

696

Seedrs update regarding Goodbox:

Dear Investors,

We want to apologise for the delay in providing an update on the situation regarding GoodBox Ltd. The reason for this is that we have been speaking to various stakeholders in the company to get total clarity on the company’s position and progress of the administration process. We wanted to ensure that we were in a position to provide a comprehensive update before communicating with you.

Overview

At a meeting last Tuesday (10 January), a Part 26A Restructure Plan was put forward to the company’s shareholders and creditors (the “Restructuring Plan”). This was put together by NGI Systems & Solutions Limited (“NGI”), a supplier and creditor of the company, which is owned by the pre-Administration Chief Technology Officer of GoodBox. The explanatory statement issued by NGI for this restructuring plan is attached to this update (“Plan Document”).

You’ll find NGI’s summary of the events as well as rationale for the Restructuring Plan on pages 4 and 5 of the Plan Document. Please note that the company’s administrators, Frost, declined to be part of this Restructure Plan and the Plan Document has been produced solely by NGI.

A summary of the Restructuring Plan is set out at the end of this update and the explanatory statement shared with the shareholders and creditors is attached.

What transpired

The meetings for each class of creditors and shareholders (further details on the classes in the summary below) were held on 10 January 2022, and Seedrs attended on behalf of Seedrs investors.

The Restructuring Plan did not receive the approval of one of the four classes, the convertible loan holders, as British Business Bank voted against the plan. The administrators of the company, Frost, also voted against the plan. We understand this was partly due to concerns around the viability of the plan and NGI’s conflict of interest.

Seedrs holds around 6% of the shares in Goodbox and less than 1% of the total value of the convertible loans, and was therefore not able to influence the outcome of the votes, which required the approval of 75% of each class of creditors/shareholders.

This outcome means that the court must now adjudicate and decide if the plan should nevertheless proceed despite the objections of the convertible loan holders. The court hearing is scheduled for today, 16 January 2022. We do not currently have the results of the court hearing and will share this with investors as soon as possible once the results have been shared.

Further details of the creditor/shareholder votes are set out in the summary below, and we will look to share the summary report of the meetings when this becomes available to us. We have followed up with the administrators for this.

We understand from the administrators that the alternative to the Restructuring Plan would be a compulsory liquidation. The liquidator appointed would look to sell the company’s assets and pursue any outstanding claims the company has in order to recover as much value as possible for creditors. Should some of these claims succeed, creditors of the company may see some return but it is very unlikely that any existing shareholders will recover their investment.

What happens now

We will update you on the outcome of the court hearing as soon as possible. We will also continue to engage with NGI, GoodBox, the administrators and the British Business Bank to identify the best way forward to protect investors’ interests in the circumstances.

In the meantime, thank you for your patience and please reach out with any question you may have.

Kind regards
The Seedrs Team

697

The important part:

1 Like
698

Another bullet dodged,this Crowdfunding game is akin to the Wild West!

1 Like
699

I have a sneaky feeling that Bnext (raised on CrowdCube) will “be next”