Daisy Green raised £775k on Crowdcube via a bond issue for 4 years at 11%. Two years later they are repaying lucky bond purchasers.
Well lucky in the sense that at least nothing has gone wrong and everyone gets a little interest ( the company is about to make its 4th and final payment on 9th December) plus their principle back. The lost opportunity costs are best ignored. The risk, these bonds have no security attached and are not covered by any Government scheme, should also be ignored.
Daisy have seen good growth and are ahead of their projections which is very encouraging. On the back of this success they have come up with deal with a UK bank to fund them - we presume at less than 11%. This deal will, according to the company, allow future growth and success but that will not involve the investors who facilitated it. So the company have got rid of the now burdensome bond. They must be hoping that they dont ever have to come back to the crowd for more cash.
Certainly one investor who contacted us was a little miffed that the deal had been cut short 3 years early with no penalty. However those were the terms, even if you had to delve into the small print to find them.
It might be helpful if Crowdcube made the early settlement clause a little larger. Then again who ever thought Crowdcube would be helpful?
Here is a copy of the notice sent out via Crowdcube -