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Advice regarding shares purchased

Discussion in 'Other Asset Classes' started by SOULFLY3, 31st May, 2016.

  1. SOULFLY3

    SOULFLY3 Well-Known Member

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    I dabbled in shares for the first time ever approximately 18 months ago thru a friends company that was to be listed on the share market by xmas 2015 but still is not.
    I spent 5k which equated to 40,000 shares.
    I have the shares certificate.

    (The reason I jumped in was my good mates partner was the secretary for this company and they purchased 25k worth)

    I have since requested to sell my shares since January 16 as at the time the CO told me they have doubled in value.
    I was told when a buyer wants to buy they can be sold..

    5 months on and he isn't replying to emails And I plan on calling today..

    Is there anything I can do? Or have I been taking for a ride?

    Thanks
     
  2. Hodor

    Hodor Well-Known Member

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    Be interested to hear what happen, best of luck.

    Like property a security is only worth what someone else will pay for it.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    What percentage of ownership does it represent?
     
  4. willair

    willair Well-Known Member Premium Member

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    Do you know why the company was not listed,a few go this way with struggling entrepreneurs,maybe they could not get the required funds up..
     
  5. SOULFLY3

    SOULFLY3 Well-Known Member

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    Thanks for replies,
    DT certificate does not indicate percentage..

    He said it was to be listed by years end (2015) and the price expected to rise to close to a dollar
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    To sell you will have to find a buyer.
    Does your shareholder agreement prevent you from selling to outsiders or are there any restrictions?
     
  7. SOULFLY3

    SOULFLY3 Well-Known Member

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    Hi Terry
    No agreement :/
    It was transfer funds and receive certificate

    Feeling like ive be stooged
     
  8. Excalibur1

    Excalibur1 Well-Known Member

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    Generally shares will go into escrow where you cant sell for a certain amount of time.

    The moment your mate was not replying to emails you know you are not the only one calling him / emailing him. What does that tell you?

    I was in similar situation 6 years ago, it was expensive lesson ($140k). It took them 4 years to list. Even then it was struggle to sell as it was only on secondary exchanges. At the end I got money back and no profit, but I lost a lot of time. It was a good lesson.
    Write it off to learning.

    Try and register your certificate with a broker and get broker to sell them for you. Although I don't think you will find anyone willing to do it for 5k.

    Where are they trying to list? Call ASIC and do searches to see what you can find out. It could be just pump and dump scam. They have been happening a lot in europe and asia recently. Few players popped up in Australia too.

    They do referral scheme too, where it can be possible your mate got commission on the money he brought in. It ranges between 10%-15% of the total brought in.

    Good luck mate.
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Good Golly. What does the constitution say?

    Do you have a buyer?
     
  10. SOULFLY3

    SOULFLY3 Well-Known Member

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    No buyer should I call the CEO ?
    All I recevied was Share certifiacte with share total and amount paid with my name, address.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    ask the other shareholders if they would like to buy you out. Ask the director for a copy of the constitution and any shareholder agreements.
     
  12. The Falcon

    The Falcon Well-Known Member

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    This has got stooging / amateur hour written all over it. Do an ASIC company extract and have a look if you even on the share register.
     
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  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    This is a good point - are you the registered owner??!!!
     
  14. SOULFLY3

    SOULFLY3 Well-Known Member

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    Thanks, definitely amature hour.. stupid by myself also.
    Certificate indicates I am the registered holder.
    Ordered company extract.. not sure what I am looking for in the extract?

    under share information has Class
    OPT #issued 1330000
    ORD #issued 5845000 and amont paid 672700

    thats all under shares..
     
    Last edited: 31st May, 2016
  15. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    There could be a breach of Corporations Law if the offer was made to the public and a off market launch with more than "x" shareholders or more than $ raised. Thats why many companies need to issue a prospectus. Depends on size.....Best start point is a company search. It will tell you who else subscribed and the no of shares.

    http://asic.gov.au/regulatory-resources/fundraising/raising-funds-in-australia/

    You can discuss your concerns with ASIC. No disclosure documents seems a breach.
     
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  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    This could be used as an incentive to get your money back.
     
  17. SOULFLY3

    SOULFLY3 Well-Known Member

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    Bit of an update,
    I supposdly sold the shares & was refunded $3700 over night.

    Am waiting for a reply regarding the remaining $1300 as to why full amount not paid.

    I am glad I even received anything..
    Stupid investment I dont know what I was thinking!
    just believed the lies of 10x growth!
     
  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Did you sign anything? All the shares?
     
  19. SOULFLY3

    SOULFLY3 Well-Known Member

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    Hi Terry,
    Supposedly they thought I bought at X cents and share and it worked out to be $3700.
    I emailed the funds transfer of the initial 5k and she goes oh right thats weird.
    She said she will sort it out..

    :rolleyes::confused:

    All in all lesson learned and glad I got majority of money back and hopefully all by end of week!
     
  20. Hodor

    Hodor Well-Known Member

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    Good to hear you have got some money back and hopefully more coming.

    Seems interesting (to me anyway) they are just giving your money back at price paid per share. It's been almost 2 years, price should have gone in some direction or is this common with start ups?
     
    SOULFLY3 likes this.