Freetrade on Wealth Club

Hi everyone

We’re pleased to announce that we’ll be shortly kicking off a follow-on fundraising with Wealth Club.

Some of you may already know Wealth Club. It’s a platform that provides investment opportunities for high net worth and sophisticated investors.

We’re running this campaign as an extension of the round we closed on Crowdcube earlier in the year at the same valuation.

There was a lot of work behind the scenes to get the Crowdfunding round ready and Wealth Club approached us with an attractive offer to raise through them that we thought made sense. We’ll be targeting a raise of about £1m.

While there may be some overlap between Crowdcube and Wealth Club investor bases, it’s likely this will allow us to get Freetrade’s story out to a new group of potential investors.

We’ll keep everyone posted once the round closes. These tend to run for a month or more, so we may include this in a company update towards the end of October.

Best

Freetrade Team

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

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Just to clarify that the investors on Wealth Club will be paying the same as the investors paid a few months back.

Can you also tell us how much longer runway this will give Freetrade,will it get us to the IPO in 2024/25

Thank You :pray:

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Thanks for those questions. Yes the share price and valuation are the same as we ran on Crowdcube.

Our runway is currently the longest that it’s been in quite some time - comfortably over two years. The key inflection point for us is to reach profitability and control our own destiny. That’s within reach and, as we said, we’re targeting positive cash EBITDA early in 2024.

Hope that helps.

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“Year to date (July), the Company is £1.3 million ahead of its 2023 forecasts” good work!

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Next year is going to be a massive year for Freetrade,I predict massive growth and exciting developments :+1::clap:

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Curious to know if Wealth Club charge a sucess tax on investors like the parasites at Crowdcube do.

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Is the wealth club only for people who drink tea ans crumpets and have 1 million dollar or can us peasants who drink council juice and custard cremes invest as well?

Ahh I see the minimum is just over 5k.

"The Company is seeking to raise £1.0 million at £2.60 per B3 Preference Share. This share class carries a 1x liquidation preference and ranks pari passu with the institutional shareholders. It is exclusively available to Wealth Club investors for a minimum investment of £5,018 (usually £50,000). "

What does the 1x liquid mean and are B3 shares good?

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Dunno…

…but that’s a sauce from Nandos.

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It means if you invest at the current valuation, in the event of a fire-sale, you will get your money back before ordinary shareholders get anything.

Current preference shares = (something like) £88.5M, so class B shareholders (most crowdfundeers) will only recieve a return if the business is sold > £88.5M.

Freetrade had offers > £100M, so 1x liquid preference would appear to be a great deal on paper. Obviously the higher the valuation the > the return…

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I’m thinking about it but would only manage the minimum but it would add to my last 3 rounds of shares.

As much as I love Nandos, their trying to create an equal footing on price with us Crowdcubers

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So is that a good thing or bad thing? Iv never been to nandos BTW :slight_smile:

Yes, it means that all parties are treated the same, so in effect Wealth Club members don’t get any preferencial treatment over the rest of us who have already invested

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Does Wealth Club have a secondary market? Or even Crowdcube for that matter, I recall a few years ago they were exploring it.