Seedrs suspends its own shares after entering “advanced stages” of a new funding round

By Oliver Smith on 12th August 2019

Equity Crowdfunding

The crowdfunding giant says it’s simply sticking to its own Secondary Market rules.

Seedrs suspends its own shares after entering “advanced stages” of a new funding round
Image source: Jeff Kelisky, Seedrs CEO.

Andy Murray’s crowdfunding platform of choice, Seedrs, failed to list its own shares on its monthly Secondary Market last week, blaming “advanced” talks around a new funding round.

Seedrs first highlighted a new funding round in its annual report released on 1 August, describing “advanced stages in a fundraising discussion”.

Over the weekend The Sunday Times reported that Seedrs had failed to list its own shares this month, which Seedrs later confirmed was related to the funding discussion.

“Under the rules of our Secondary Market, we are required to declare a company ineligible as soon as it announces that it is in the process of raising a funding round,” Seedrs posted on Twitter yesterday. 

“We applied the rules to ourselves, just as we would with any company, and declared our shares ineligible for the August trading window. That is the only reason they are not trading."

Last year the crowdfunding platform reported an operating loss of £4.3m on revenues of £3.18m, with cash reserves currently sitting at around £6m.

Some reports alleged the company was close to running out of cash, but Seedrs denied it, added that “we are not running out of cash or close to it.”

Neither the size of the funding round nor the potential source of this fresh funding has been disclosed by Seedrs.

Seedrs last funding round was in 2017 when it raised £10m, including £4m from Neil Woodford’s Woodford Investment Management and £6m from crowdfunding on its own platform.

Comments