A crowdfunding pitch for a TV channel called Property TV has been pulled.
Investors have apparently been told that their investment will no longer be processed via Crowdcube.
Concerns had been expressed online on social platforms.
The pitch on Crowdcube closed, raising some £320,000 – some 58% over its target – from 290 investors.
According to the Crowdcube letter sent to a would-be investor, the pitch has been cancelled after concerns arose about its management.
The firm’s founders are Michael Hammond, 22, and Ben Rogers, 44, who has previously run a lettings management business.
Hammond has made it clear in a note posted online that the TV project is going ahead.
The letter from Crowdcube to investors, which can be seen online, says: “After the close of the Property TV pitch, issues about the management of the company came to light that we felt materially affected the pitch.
“Following enhanced due diligence, Crowdcube has made the difficult decision to cancel the pitch and not to collect investors’ money.”
In his online note, Hammond says a major investor had committed a large sum to the company prior to the pitch going live.
“With their own development in this time, that investor now wishes to significantly increase their stake in the company. This reduces the number of shares in Property TV that are available.
“In addition, Property TV has negotiated its placement on a mobile app that is already installed on over 14million devices. This secondary method of content delivery (on top of our broadcasting through the BSkyB platform) is a lucrative second route to market and is considered to materially affect the company in a positive way, including its valuation.”
He adds that a seasoned finance director is to be appointed, and that Ben Rogers will concentrate on creating programmes but “will be taking a less prominent role in other aspects of the company”.
Hammond says: “Whilst we regret the pitch being cancelled, the incoming investment, access to broadcast on 14 million apps and the appointment of an FD will strengthen the company, and it is of the utmost importance to us that all investors who are interested in becoming shareholders in the company are aware of these changes.”
Eye spoke to Hammond’s father John before the Crowdcube decision. He said that the channel is due to launch on Sky on March 31, and will begin by broadcasting 12 hours a day, before going up to 14 hours and then 17 hours a day in about July.
He told us that the free-to-air channel will have 11 income streams.
The Crowdcube letter can be seen on this Property Tribes thread