27th October, 2019
For those of you who attended any of our presentations you will be aware that the variety of funded options with which we have engaged and applied to for all the various elements of our project formulated vital components of our business plan. We have only just been informed that the fund to support our capital purchase (which was originally promised to be available from 6th June 2019) despite regular communications and promises from the funder both prior to launching our share campaign and all the way through, will not now be available during our Crowdfunder project.
In short, our business plan and proposal relies on the timely distribution of the eligible funding from the different funding sources along with the £80,000 community shares.
Therefore after much discussion, we have agreed as a board to safeguard our investor’s money. We take our responsibilities as a board seriously, which includes the financial responsibility of protecting your money and investment from risk where we can. The significant risk we now face has triggered the need to safeguard our investors’ money by refunding all money pledged.
Crowdfunder only charges when a project is successful which, in our case, is when we meet or exceed the target of £80,000. There is then a 7 days period in which these funds are automatically paid out. At this point Crowdfunder would take their percentage totalling £2,400. Since the capital funding source is not guaranteed at this moment in time, CPCH Ltd would either have to find £2,400 to ensure no investor loses out or pass that loss on. Neither is really a viable option. After considerable discussion the board has taken the decision to end our Crowdfunding prior to hitting target to ensure that no fees are taken and that investors can be repaid in full.
Please be assured that our vision for the building and how this can benefit the community has not changed. For the first time in 4 years we have a realistic price agreed for The Plough so whilst this is undoubtedly a huge setback we do have further options we can explore and will be spending the coming weeks investigating these, this will require a change to the business plan.
We want to thank you from the bottom of our hearts, for your support and belief in us and in the Plough. Between crowdfunder, cheques received and direct bank transfers we raised £47,100.00 from 91 investors.
We do not have access to the email address of anyone who has pledged on Crowdfunder, so we will be unable to contact you again, but we would love to stay in touch with you about future plans.
Please do email us on [email protected] if you are happy to stay in touch.
If anyone feels they have the time or skills to join the board we would love to hear from you too.
Thanks and Best Wishes,
Directors of Covenham Plough Community Hub Ltd