Dented

Den’s campaign on Seedrs is still open, they’ve now raised over £2.1m, well clear of their £1m target. A few weeks ago I posted about their last convertible offering, now a few people of the discussion board have started asking questions about definition of the triggering event. Here’s what Seedrs’ Kirsty Grant has to say

“The trigger event of raising £1m did occur prior to the Longstop Date of 5th of April. By 5th of April, Den had raised over £1m through a combination of investors who invested directly in the company and investors via Seedrs who had committed and paid for their investments via Seedrs. Den could have closed the round prior to the 5th of April, but we agreed that given they had already satisfied the trigger event, Den should continue to raise the funds it wished to accept and close the whole round together.

Therefore, the convertible investments will convert into shares at a share price of £3.12 (a 20% discount to the current round) in accordance with the email sent to all convertible investors.

We have agreed with Den that the convertible shares will be issued at the same time as closing the larger round, rather than in two separate transactions, to save administrative/legal time and costs.”

A fellow investor has responded with this.

Interesting. I was under the impression that the Seedrs round was pending a due diligence so can’t really be called “closed”, yet.
Are the investments of other investors already confirmed and signed?”

With £2m pledged I can accept that we are above the £1m monetary threshold, even accounting for drop-outs. What I don’t accept is Seedrs’ definition of a transaction – An open pitch with pending due-dilligence does not constitute a transaction. It’s time for Seedrs to start answering some questions on this one.

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