SPCE connects the higher education community with uni-specific, student rental properties, near campuses.
- London, United Kingdom
Categories: Property Digital Mixed B2B/B2C
Learn more about convertible campaigns.
SPCE wants to allow the higher education community to search and pay for university-specific, student rental properties near campuses, without the need for crippling deposits or joint tenancy liability.
We are pleased with the publicity and recognition that SPCE has had, with coverage including national papers such as the Financial Times, the Times Higher Education Guide and The Telegraph - positioning SPCE as a thought leader, which understands the intertwining of real estate, technology and higher education. For SPCE to continue establishing further credibility and traction among students and landlords, further capital is required.
SPCE has secured a bridge round investment of £94,210 to support our operations. This investment has been structured as a convertible, and existing shareholders are offered the opportunity to take up their preemptive rights.
Please note, that the company has also recently been accepted on to the Techstars PropTech accelerator in September. This includes an issuance of 6% in equity in exchange for a combination of cash and services, in respect of which shareholders have agreed to waive their preemption rights. This program will also include $100,000 investment via a convertible note, the terms of which include a discount of 20% on a qualifying fundraise of $250,000, and interest rate of 5% per annum. This convertible note does not form a part of this preemption campaign. If less than 50% of the Seedrs preemption allocation is taken up during this campaign, we will not exercise preemption on the $100,000 Techstars investment.
As this is a pre-emption campaign open only to existing investors, limited information is being provided at this time.
This investment round is being raised by way of a convertible instrument. The key terms that apply to SPCE convertible are as follows:
• Conversion will take place at the lower of:
- the share price set by the Trigger Event, subject to a discount of 20%.
- the share price determined by the valuation cap of £3,000,000 (no additional discount applied to the valuation cap).
• Conversion is triggered by ("Trigger Events"):
o An Equity Fundraise – defined as the Company raising investment capital of at least £330,000 from one transaction or a series of transactions, in exchange for the company issuing of Ordinary Shares;
o An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
• Longstop Date is 18 months from the date of the convertible agreement.
If conversion has not been triggered by the longstop date shares will be issued on the longstop date at a valuation based on the lower of (i) the lowest price of any Ordinary Share issued after the date of this Agreement; (ii) £0.98 price per share as in the previous fundraise. The convertible would also convert to equity at this price in the event of winding up or liquidation of the company.
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