Price of shares new round

Hi all,

Chip just announced a new crowdfunding round. Does anyone knows the share price of the round?

Tnks!

No no one knows yet (except for Chip staff) until the pitch launches on Crowdcube

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Do we know the latest known share price? I have never seen it anywhere mentioned.

As I’ve just said. It’s going to be on the pitch when it’s live

I meant the last known price, not the one that is being pitched.

It’s on Crowdcube from the last round. £1.39

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Based on the increase to valuation since the last raise it’s highly likely to be above the £2 per share mark :moneybag::tada::moneybag:

Hopefully we can use cubeX at the same time.

Hi All

We have raised a small amount of money this year at £1.39 per share and the CLN converted at £1.11. The new share price will be on the Crowdcube page next week but for context it will be quite modest in recognition of the size of the round and our aim of bringing institutional investors into the business.

By being prudent with the share price now we create more upside for later.

Simon

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This is good news if it happens as would be a sign Chip is on the right track as signifies passing the due diligence checks of the II, and any criteria they have in their selections. Could this allow some early investors a potential exit?

On the point of early investors being offered a partial exit… we have had discussions with Crowdcube about their Cubex platform which allows a secondary market for shares. You can register buy or sell interest at crowdcube.com/cubex - currently there doesn’t seem to be much sell interest for Chip so not sure it’s worth doing but definitely something we’d consider at a later date.

S

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The calculator shows that there has been no price increase on the stock since the last round.
Is it a failure of the calculator or is it true that there has been no increase in the share price?

Hi @vonsete, good spot, but the calculator shows the new share price of £1.409016, the value you’re seeing will be increased from our last round - the convertible where the coupon closed at ~£1.11

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Hi Paul,

Based on Chip raising money in March this year at £1.39 per share and a company valuation of £67,860,000, I’m extremely confused as to how the company can now be valued at £1.41 per share (7 months of growth after the last raise) but yet a company valuation of £106,786,000. Even if the pre-money valuation is £86,700,000 I don’t see how Chip can justify a 2p increase in share price for a c.£20,000,000 increase in company valuation (c.30%).

Please can you explain how this can be the case?

The last round had a pre money valuation of £82,208,554.00.

Which last round sorry?

The last round I knew of was 7 months ago where they raised £3m of new equity at £1.39 per share at a valuation of £67,860,000.

That round had the CLN convert to shares which provided the “true” pre money valuation being the £82 mil figure post conversion.

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Exactly, the calculator released by Chip really seems odd, I have invested equal amount (1000 pounds) in both 2019 and 2020. According to Crowdcube, I have received the same amount of shares (965 shares per round) in both rounds so the valuation has not changed. (or marginally changed from 36 to 45 M ) However, when I checked the calculator, the value of my shares only increased to 2719.

Some how there is only a 700 pounds increase on a 2000 pounds investment when the company claims to have raised the valuation to 100M. If my original investment as made at 45M, There should at least be 4000 pounds in value?

I suppose everyone is also having the same question. Chip should explain why the new share price increase is not in line with the valuation increases.

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Sunny I am curious if you also invested in 2019? if you can help me out,

What I am confused with is that I have invested the same amount (1000 pounds) in both the 2019 and 2020 round. However, if the 2020 CLN is converted at a valuation of 82M, why did I get issued the same amount of shares as I did in 2019? when the company was supposedly worth 36M?

thanks

I’m Josh, Business Operations Manager here at Chip.

To explain as the company goes through funding rounds, millions of shares are issued, which will cause dilution unless shareholders invest further. Effectively if no further investment is made you will have the “same slice but of a much bigger pie”. Your shareholding value would therefore not increase in line with the company valuation.

To run through an example, if you had 1,000 shares back in Nov 19 you would have held approx. 0.0027% of the business when the company had a valuation of approx. £37mil. We then did another raise and if no further investment was made this would have diluted your holding to 0.00251% when the company was valued at approx. £44mil. In Feb 21 we issued approx. 10 million new shares, with the company being valued at approx. £82 million. If no further investment was made your shareholding would have diluted to 0.00187%.

Hopefully this answers your question.

Best

Josh

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