Hochanda -worth investing in?

Worrierwalker

I'm thinking of investing in this- probably only a minimum stake. Just wondering if anyone else has invested or is thinking of investing?

sorcerer

How are you going to invest in them, they don't seem to be listed on any stock exchange? It's a private limited company.

sorcerer

Just noticed their are 271 shareholders listed in companies house, seems a bit of strange way of running a business. Why not just list on AIM instead?

IanSt

I thought hochanda was a crafting/shopping channel so wondered what the investment could be. Did some googling and seems that there is some crowdfunding going on to invest in the channel to expand into Europe.

I doubt whether there would be too many on this board interested in a scheme with a lot of risks and a potential 100% loss of capital, but unlike other schemes that people ask about it is at least something that does at least seem to exist

Asghar

Worrierwalker wrote: »

I'm thinking of investing in this- probably only a minimum stake. Just wondering if anyone else has invested or is thinking of investing?

Invest some of your money and let us know in 6 months to a year how you got on.

Worrierwalker

Yes there is a risk warning as part of it c&p'd below- I just wondered if it would be worth risking a £100 and if anyone else on here has invested.

'Investing in an early stage company such as Hochanda Limited involves risks including loss of capital. This means there is a risk that you could lose some or all of the money you put in. Hochanda Limited shares are not listed or traded on any recognised exchange. This means you will not be able to easily sell your shares if you need to get your money back quickly.

Before deciding to invest CLICK HERE to read the full risk warning

This material has been approved as a financial promotion by Share In Ltd, which is authorised and regulated by the Financial Conduct Authority (no. 603332). This share offer is not an offer to the public. Investment can only be made by registered investors on the basis of information provided by Hochanda Limited. Share In Ltd takes no responsibility for information provided by Hochanda Limited.'

sorcerer

I am intrigued about how you were offered these shares, I would typically think, this sort of investment only gets offered to sophisticated investors, but since you are thinking of investing just £100 I don't think you fit into this bracket. Also have you checked what is the minimum number you can buy, because £100 seems very low.

Did you see it on facebook, because that's the only offer I can find. In any case , I would not touch it. I doubt they will ever make any decent returns. TV is a hard business to crack.

Worrierwalker

Hi Sorcerer, yes you would be right about me being an unsophisticated investor! I've only ever invested in property. I know zilch about shares etc.
The offer is on the Hochanda site.
The chairman and co-founder originally started Ideal World and Create and Craft, which they later sold, apparently the then investors all benefited from the sale.

From what I can gather and as IanSt has said, Hochanda want money to expand into Europe and they have started a crowdfunder .

Not sure about it, but thought £100 wouldn't be too much of a knock to take.

sorcerer

So I took a look at their 27 page prospective (which tbh is very small and lacking a lot of details).

First problem, if you buy the shares and you want out, who are you going to sell them too. answer you can't.

Second problem, their are a loss making business, after 7 years no profit, their business overheads are huge. They have managed to keep the business running by getting more and more loans.

Normally when I get a prospective for a new company its 100s of pages long, with section about risk for example, their is nothing about that here.

Malthusian

sorcerer wrote: »

Second problem, their are a loss making business, after 7 years no profit, their business overheads are huge. They have managed to keep the business running by getting more and more loans.

So why aren't they just raising money the same way? Presumably because their lenders won't lend any more.

Which means you are next in line to be tapped up to allow the directors to expand their horizons, I mean the company, by flying to well-known international markets like Paris, Milan, Venice, etc etc to spend your money, I mean drum up business.

Worrierwalker

Yes,fair points well made, thanks for the good advice everyone, I'll leave well alone.