Q&A from ‘The Future of THC Webinar’ dated 3rd October 2019
Frazer Fearnhead, CEO of The House Crowd, presented a webinar entitled ‘The Future of THC’ 3rd October 2019.
If you want to watch a recorded version of the webinar please click here.
As promised, we have collated all questions asked on the night and provided responses below.
Questions and Answers…
Q: Enterprise Investment Scheme – What does that mean to the shareholder?
A. Up to 30% income tax relief through EIS and it also means you pay no CGT when you sell the shares
Q. “What’s the difference between investing in THC products and investing in the company”
A. Our products offer a fixed target return decent level of security. Investing in shares in companies involves a higher degree of risk. If the company fails you may lose your investments but if the company does well you may receive an annual dividend and may make a big profit when you sell your shares or the company is sold.
Q. “Will dividends be paid?”
A. As the largest shareholder in the company I would certainly like that to be the case… and provided we can fund growth as quickly as we would like then yes that is certainly the intention
Q. “How does the fact that there will be more shareholders in THC affect my current THC shares?”
A.It will dilute your overall percentage of equity but places a higher value on your overall shareholding so your shares are being diluted by eg 2% but their value has increased by circa 37%
Q. “ When will the secondary market be available?“
A. I was speaking with the CEO of Seedrs last week and he said they expected it to be operational by the end of the year
Q. “What are the possible exits?”
A. Via seedrs, sale to wealth management co, challenger bank financial institution European or American P2P platform who wants an entry into UK market
Q. “Why did you do this round through Seedrs?
A. Mainly because the opportunity their Secondary market offers to give investors greater liquidity
Q.“What is your strategy to meet the 100m valuation forecasted?”
A. The three new markets I mentioned. A large part of it as with all p2p companies will depend on attracting institutional funding lines – we have started discussions with several already and are working closely with a consultant who at his last company built their loan book up to half a billion pounds a year funded largely by institutional investors
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