IMPORTANT INFORMATION: Chip Conversion and value query

Hi there, I recently received an email with subject “IMPORTANT INFORMATION: Chip Conversion and value”

There is an option to “Exercise pre-emption” and this is at the bottom:

In order to maintain your % stake in Chip you need to invest: Andrew Levy : £xxxx

If I click on the “Exercise pre-emption” button I go to Crowdcude and log in but I see no option to “maintain your % stake”.

How do I do this? Or is it simply a case of making a new investment of £xxxx from above?

Thanks,
Andrew

Hi Andrew
In crowdcube if you click on invest and put in the amount shown on your email it will display an ‘above’ and ‘below’ option. These are the amounts closest to what you need to invest if you wish to maintain.

Ok, thanks.
I thought so, I just wanted confirmation.

Hi Andrew

Are you seeing access to the page? If not you may be logged in with an incorrect email address. support@crowdcube.com if you need any help.

S

Hi Simon,

I could access the page fine. II just thought there may have been a separate “maintain your % stake” button as well as the “invest” button.

No worries, it’s all ok now :+1:

Thanks again.

This is exactly the question I came here to ask. Thank you.

1 Like

Hi all
Just about this message- I’m pretty new to investing.
I’ve seen my email saying the same as mentioned above

“#### In order to maintain your % stake in Chip you need to invest: xxxxx: £xxxx”

What is the benefit to investing more. And what do we lose out on if I don’t invest more?

Thanks

Hey, just want to confirm, does this value provided cover A and B shares for those who have both?

Thanks,
T

Great thanks, wanted to be sure I wasn’t only protecting my A shares. :slight_smile:

The pre-exemption value is only in relation to your A Shareholding.

Hi All,

The pre-emption amounts are calculated on A shares i.e. the % of all the A shares that you own is the % of the £3m of new investment that’s your pre-emptive amount. In other words your “fair share” of the new investment we’re raising. That said you can investment more if you want as not everyone will take up their pre-emption.

Simon

The benefit to investing more will arise if Chip’s valuation increases and each share you own is then worth more than what you paid for it. More shares owned = more value to you overall.

By not investing, you will not own extra shares which could grow in value. Also, since new shares are being issued, your existing holding will be less of a proportion of the overall company unless you buy an equivalent proportion of the new shares being issued.

Also see here: https://www.investopedia.com/terms/p/preemptiveright.asp

Hope that helps, and I am sure someone more knowledgeable will be along if I have misstated anything.

Ben

ok, so lets say that email i have says i need to invest £14.00 at the current valuation i get 10 shares. So far so good. But what about the previous £140 i added. Will i then after this have 110 shares? (figures are for illustration purposes)

You would have more than 110 shares because the previous £140 bought the shares at a discounted price. Using your example if the share price pre discount was £1.40 and the discounted shares cost £1.30, the previous CLN round funds (£140) would give you ~108 shares now. Therefore you would have 118 shares at the end of this round as the CLN would have converted.

Any shares bought this round are not discounted.

Is there anywhere we can find out what our total current investment is currently worth?

Hi there, as the original poster my query has been answered.

But I would also like to know if we can see how much our current investment is (or is projected to be) worth.

Thanks
Andrew

Not until all the figures are updated on CapDesk then you will be able to see

Hey,

Apologies I’m quite late to the party.

But again going through my emails, I have the option to exercise my pre-emption rights.

Just to clarify (being new to the investing side of things) What would I be getting out of this?

Do I have to invest the same amount I invested initially or can it be less/more?
What if I choose not to invest - it mentions my stake will be diluted?

Thanks in advance. :slight_smile:

Have you got a rough idea When will this be?

So this is not open to those who only have B shares?