*** UPDATE ***
After pursuing legal avenues against The Sunday Times, we’re pleased to report it has permanently removed the online article in question and has today – Sunday 20th October 2019 – printed a clarification in the paper.
If you have any further questions please don’t hesitate to contact us at: [email protected]
Monday 12th August 2019:
Yesterday, The Sunday Times ran a highly misleading article about Seedrs, making various allegations that our business is in trouble. This is patently untrue: we have just come off a record first half of the year, and we are stronger than we have ever been. We want to use this opportunity to correct the inaccuracies in the article and set the record straight.
The article claimed that our shares have been “suspended” while we sought new cash. This is an entirely disingenuous take on the facts. When we released our 2018 Shareholders Report on 1st August, we announced that we are in advanced stages of finalising a new round of funding. Under the rules of our Secondary Market, we’re required to declare a company ineligible as soon as it announces that it is in process of raising a funding round. We applied the rules to ourselves, just as we would with any company, and declared our shares ineligible for the August trading window. That’s the only reason that they are not trading this month.
The article also said that we are running out of cash. This is simply untrue: we are not running out of cash or close to it. However, like many growth companies, we regularly raise capital in order to invest in major strategic initiatives and other growth drivers, and we are in the process of completing one such capital raise now. We look forward to sharing details about our new raise as soon as it is finalised.
The platform is business as usual. You can read our 2018 Shareholders Report here which outlines our recent progress and successes in great depth – we hope you enjoy reading it. You might also find this article in trade publication Crowdfund Insider, which was also published yesterday and presents a substantially more accurate report on us, helpful background.
We’re disappointed that The Sunday Times chose to mis-report on Seedrs this way, and we are considering the possibility of action against them. In the meantime, it’s important to us that our investors, entrepreneurs and shareholders know the strength of our position and our confidence in the future. We’re excited for the second half of the year and what 2020 will bring for both Seedrs and the sector as a whole.
If you have any further questions please reach out to me personally or [email protected].
Thank you,
Jeff Lynn
Executive Chairman & Co-Founder
