Weāre pleased to announce that weāll be shortly kicking off a follow-on fundraising with Wealth Club.
Some of you may already know Wealth Club. Itās a platform that provides investment opportunities for high net worth and sophisticated investors.
Weāre 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. Weāll be targeting a raise of about Ā£1m.
While there may be some overlap between Crowdcube and Wealth Club investor bases, itās likely this will allow us to get Freetradeās story out to a new group of potential investors.
Weāll 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
Donāt invest unless youāre 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.
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 itās been in quite some time - comfortably over two years. The key inflection point for us is to reach profitability and control our own destiny. Thatās within reach and, as we said, weāre targeting positive cash EBITDA early in 2024.
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 Ā£1.0 million at Ā£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 Ā£5,018 (usually Ā£50,000). "
What does the 1x liquid mean and are B3 shares good?
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) Ā£88.5M, so class B shareholders (most crowdfundeers) will only recieve a return if the business is sold > Ā£88.5M.
Freetrade had offers > Ā£100M, so 1x liquid preference would appear to be a great deal on paper. Obviously the higher the valuation the > the returnā¦
Yes, it means that all parties are treated the same, so in effect Wealth Club members donāt get any preferencial treatment over the rest of us who have already invested
