The investments on Abundance are transferable and you can use the marketplace to look to buy or sell these investments. However, there are instances when the use of the marketplace is restricted for a particular investment. Some of these situations are outlined below, however Abundance reserves the right to restrict the use of the marketplace at any point where it feels this is necessary to maintain the integrity of the marketplace.
The investment is still open or the issuing company has not met all the conditions to receive the funds
An investment cannot be listed on the marketplace until the following criteria have been met:
- The investment offer has closed
- The 14 day cooling off period has elapsed for all investors
- The issuing company has satisfied the conditions required for the investment to go ahead which are set out in the Schedules to the Debenture Deed and which is the trigger for the Debentures to be issued.
Until the issuing company has met all the conditions to receive the funds, the money remains reserved in your account. Abundance works closely with the issuing companies to ensure the process is completed within a timely manner after an investment has closed. The time it takes to meet all the conditions will vary for each investment but typically takes a few weeks up to several months.
In the event that an investment doesn't reach the minimum target before the final close date, or the issuer is unable to satisfy the conditions necessary to receive the funds, Abundance will return the money in full to all investors' Abundance accounts.
A planned update from the issuing company to investors is one month overdue
We ask all issuing companies to provide updates on a 6-monthly basis. If an issuing company is over a month late in providing an update we will suspend trading of the investment until the update has been provided. This is to ensure buyers and sellers have up to date information about the company when making an investment decision.
Other restrictions where we feel it is required to ensure the integrity of the marketplace
There may be occasions when Abundance restricts the sale of a particular investment on the marketplace and we reserve the right to do so where we feel it is in the interests of Abundance members.
For example, there may be specific instances where certain information is restricted to investors only due to an ongoing legal process or other sensitive matter. In these cases we reserve the right to restrict trading of the investments on the marketplace until such a time as the company is in a position to make information available to both investors and non-investors. This is to ensure that there is no mismatch of information between holders of an investment and non-investors so that all of our investments can be fairly traded on the marketplace.
We will keep any such situations under close review and look to make trading available as soon as possible.
There is a Cash Return payment due to be paid within the next 3 days
It is not possible to list an investment for sale where the close date of the offer is after the next Cash Return date. This is because the value of an investment will change after the Cash Return has been made, so any bids received before will no longer be valid.
If the investment is put up for sale before a Cash Return, the close date of the offer must be more than 2 days before the Cash Return due date to allow enough time for an offer to close; the seller and buyer to agree a price; and for Abundance to finalise the transfer of ownership ahead of the Cash Return payment to the new holder. You will therefore not be able to list an investment for sale 3 days before the Cash Return due date. The investment will be available to list again the day after the Cash Return.
If a trade is only agreed after 5pm on the day before a Cash Return, Abundance will not be able to finalise the transfer of ownership before the Cash Return payment. In this case Abundance will contact the buyer and seller after the Cash Return payment to ask if they would like to go ahead with the trade at a different price.