MyCarNeedsA.com provides car owners with a service to get quotes from pre-approved local garages.
|Location||Portadown, United Kingdom|
|Sectors||Automotive & Transport Digital Mixed B2B/B2C|
Fundraising history on Seedrs
21 Oct 2019£350,00095.15%
4 Jan 2019£931,72026.12%
MyCarNeedsA.com is an online comparison site for routine car services, maintenance, and MoTs, giving car owners an easy and convenient way to compare quotes from pre-approved (checked for quality) local garages in terms of price, services offered and customer ratings.
As you may remember, when we closed the investment round earlier this year, we advised we had appointed Price Bailey as our corporate advisers to work with the Board, on behalf of the company and shareholders, with a view to securing significant scale-up investment later in the year and work with the business to exit.
Part of that strategy involved securing an additional £400-600k funding in advance of the proposed £2m round in Q4 2019.
Whilst the process to secure the required interim funding was not straightforward, the company looked to be in a position to close the investment round at the end of August. Unfortunately, however, we have to report a significant change in our position.
To summarise how things stand:
Despite over half the minimum target being pledged by existing shareholders, the company was unable to secure the minimum level of equity funding required to trade effectively. In order to bridge that gap, a number of discussions took place with regard to agreeing a convertible loan note, with some of the key shareholders and external partners, which we believe would have allowed the business to progress as planned and reach revenue levels required for further investment at a higher share price early in 2020.
However, we have been unable to secure that investment.
Unfortunately, in absence of any alternative offer, the Board have approved a £350k rights issue priced at £0.10 per share. All Seedrs investors have the right to subscribe for shares in this campaign according to their proportionate holding, which have been emailed to them.
One of the existing direct shareholders has already underwritten all shares that are unsubscribed for by shareholders. Given current shareholding and responses to date, this may lead them to an equity holding in excess of 80% which would give them investor and shareholder majority and, therefore, effective control of the company. This could enable this investor to sell the company in due course.
The company currently has loans of £53k. The funds raised are not intended to be used to pay these back.
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