Looking to sell shares


(Dan) #106

I know the company technically hasn’t been revalued post-raise ergo the share price has not changed. But the pre and post money valuations are different by the amount raised & the share price should be pre money.

The business has another £105m in the bank and therefore it’s worth is £105m greater than it was before. That is inherently exactly how it works.

Of course it’s mathematically possible. The money is on the companies balance sheet and when being valued the difference between £1m in the bank and £101m is £100m. The money doesn’t disappear after a raise (and isn’t magically created - it just went from someones pocket into the company).


(Dan) #107

It didn’t issue £20m extra equity. It diluted everyones shares and magically created £20m worth of new shares out of thin air. It then sold them for £20m, and has £20m in the bank more than it did 2 weeks ago. The cost to the company (obviously minus fees to raise) is £0. It is £20m better off than before. Otherwise what would be the point in raising money? (what I’m getting at is it isn’t a liability/debt - it has created £20m in the same way a sale of goods would).


#108

All those extra shares are worth £7.71 each so don’t magically inflate the value of those previously issued overnight.


(Dan) #109

Monzo now has £20m more than it did before the raise.

My point is I haven’t seen Monzo clarify whether £7.7145 is pre or post money. It could quite easily be either.


#110

It is both, because they are not alchemists. :slightly_smiling_face:


(chrisdalziel) #111

Dan, you’re conflating the value of the company with the share price. They’re different as the amount of shares in issue has changed.


(Nick) #112

Seems a bit early yet for the shares to have made any gains.

Not lest because, looking at wider markets today:

Also, Crowdcube say transfers are only allowed in exceptional circumstances. While they may not have stopped any trades yet, how long before they put their foot down and tell people to stop mugging them off?


#113

I think for some, the point here would be the ability to access more shares than ones limited allocation in the regular crowdfunding rounds. The only way to create a sizeable holding would be to buy off current investors through this forum. So regardless of valuation, what is the premium (if any) they are willing to pay to increase their holding? The next opportunity may only be in a years time at double the price or more, so would a small premium now be that bad?


(Dan) #114

Ignore me, I’m being super dumb. The penny has just dropped. :flushed:


#115

You would still need to overcome Crowdcubes policy of “exceptional circumstances” - Which is unlikely if truth be known.

You almost had me convinced :joy:


(Dan) #116

:joy: *Slowly ducks out of thread & mutes to avoid further embarrassment *


#117

That’s pretty much the definition of a market and applies to all shares!


#118

If you invested max each round (including this one) you will hold 0.003% of Monzo - so to get a reasonable stake means finding 1000+ fully invested members willing to sell.

At a value of £28,000 you would need at least £28 million to buy 3%.

(Counts in fingers … I think)


#119

Are selling your shares 1 day after the raise?


( related to Monzo CEO, Investor in Monzo ) #120

if they are they would have to gain permission from Monzo , and I don’t think Monzo - who would know when they were purchased, would look on it kindly if they were only bought this week having excluded others that wanted to purchase to try and sell a couple of days later at a profit :slight_smile:

but hey , who knows :slight_smile:


#121

I’m not necessarily talking about a stake in % terms, but you have what looks to be about 5000 investors that invested the upper limit of £2k. Sure some of them may have stretched themselves to get there, but I am sure there are plenty of others that would have taken £5k worth or even more given the chance. Was their decision based on £7.71 being the perfect price or seeing the long term potential and just wanting to get in with as much as they could? Probably the later. So here they may have an opportunity to commit some more and may be willing to pay a small premium if required.


#122

Yes, true, but that’s for the seller to sort out. If he convinces them of the circumstances, the price agreed between willing buyer and willing seller is not their concern.


#123

Absolutely - But this thread, and I’m sure many others over the next year or so seem to centre around “how much are my shares worth”, and the answer is… “However much you can get for them whilst convincing Crowdcube you fit their criteria”.

If someone can sell for a profit, good on them! :grin:


#124

Agreed!


(MM) #125

Hey, I’m interested in buying if you are still selling?