UP Investments raised £137k on Crowdcube in 2014. They were supposed to be the go to place for crowdfunding.
The company is now to be handed over to White Label Crowdfunding Ltd on a straight share for share deal. UP have stated that their shares are worthless and holders should make negligible value claims - thereby somehow alleviating the fact that this deal wipes out any EIS or SEIS claims (past present or future) that shareholders could make against their UP shares. Claimants already holding rebates will have those deducted from their NVC according to the company.
The founder of UP seems to have carved himself a position with this new company having wracked up losses with UP of over £700k. The founder claims that they failed to raise enough capital. According to their accounts they have raised considerably more capital than their Crowdcube plans showed and have made considerably higher losses.
White Label have no track record, a sole director and little in the way of capital. So what they bring to the party is not entirely clear.
If you shine a light from the right direction you could see this as an exit - its in line with the last one from Crowdcube with Wool and the Gang. Pretty sure Darren Westlake wont be taking questions about this today at Crowdfest- it will be a month at least before he realises yet another one of his successes has gone west.
Hello FCA, can you read?