Verto Homes have crashed through their Crowdcube £1m total and heading for £1.5m.IMPORTANT - Verto Homes Ltd, the company raising money on Crowdcube, does not have any direct exposure on Funding Circle. The company with £1.7m exposue is Towan Heights LLP, based at Verto Homes and with Verto Homes signing off their accounts. Further Towan Heights LLP was incorporated as Verto Group Developments Towan Heights LLP with the two founding members being the founders of Verto Homes. Hope that is clear!
We wrote about their background here - http://fantasyequitycrowdfunding.blogspot.co.uk/search?q=+verto and the founders involvement in Manor Rose, which resulted in the main director being banned for 14 years.
Meanwhile at Funding Circle they have loans outstanding - well over £1m from the chat here and they are, or at least some of them are, well overdue.
You wouldnt get that impression from reading the Crowdcube pitch. In fact when asked about Funding Circle loans, the founders answer was that they didnt currently have any - maybe he meant live on the platform? Anyway it certainly wasn't a very helpful answer!
It strikes us that these loans were supposed to have been repaid before the CC pitch went live - in which case they would need to be mentioned. But as the repayment is delayed, for reasons that vary from construction delays to final paperwork delays, surely a mention of this fact would be the only honest and upfront message to send investors? It's not like Verto don't know the repayment is late.If we know about it' why doesnt the brand new Crowdcube Out to Lunch Department; that is according to Luke Lang 'World Class' - which BTW rhymes with ar......
You also have to ask just how far the FCA and HMRC are willing to bend over for Crowdcube when Verto - very clearly a house builder - is allowed to utilise EIS - very clearly not for house building.
As an aside we found this brilliant Q on the Crowdcube Verto forum - it really sums up the sophistication of Crowdcube's 285,000 'members'!