Monday, 17 July 2017

Move along, move along, nothing to see here.

Ethos Global and its two founders are relaunching and rebranding before the old body is buried.

We received an invite today to the launch party for SOMA on 16th September - the new Ethos Global.

You may remember that Ethos was recently put into liquidation by the Courts for failing to return anything to CH. Apparently they are/were in dispute with their Cambridge studio landlords - a dispute that they or CC failed to declare, when they raised over £700k on Crowdcube in early 2016. 

Rumours abound about what might have happened but we can confirm that the Cambridge studio, which was the mainstay of the CC pitch and the business, closed very shortly after the CC campaign completed and then Ethos opened its London branch but used a different company. This company then became SOMA. 

According to more rumours the newco has taken all of the CC shareholders on board after Crowdcube, who had set this deal up using a nominee structure put them under pressure to sort out the mess. This is the company with the party.

Various questions arise.

The liquidation of Ethos Global, which took £700k off investors, has not started yet and nothing has been filed at CH except the Court Order. Clearly there have been some interesting goings on and it seems likely that someone is going to want to know the detail. Were there any o/s creditors for example, what money paid for the opening of the London studio and how did it legally change hands, how can the shareholders in Ethos be offered a deal ahead of secured and unsecured creditors? CC shareholders bought into a business with one successful unit but are now being offered shares in a company with the first unit due in two months. Is all of this legal? Was any of it planned? 

Anyone out there with any answers please get in touch.

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