H2Ocean, the Fintech fund that expected to list shares on the ASX, has pushed pause in its public float as funding fell short of goal. In a letter to prospective investors, Ben and Toby Heap, creators of H2Ocean, explained their challenge;
“As you may know, we have been working hard for the past several months on the initial public offering of H2Ocean Limited, a new venture capital investment vehicle designed to invest in fintech globally. Unfortunately, when the Offer closed we had not reached the minimum subscription requirement that would allow for the construction of a sufficiently diversified portfolio, in line with our investment thesis. Accordingly, the Directors have decided to withdraw the IPO from the market and will not be extending the Offer in its current form. No securities have been or will be issued based on the Prospectus dated 6 September 2016.”
“While this is a disappointment, it is the nature of innovation; some things work and some things do not! We have no doubt H2Ocean is an important vehicle, and we have no intention of abandoning this initiative.”
The duo said they had been encouraged by the level of support but feedback from several large investors indicating interest in an unlisted fund was said to have influenced their decision. Reportedly, H2Ocean is now seeking to raise a smaller amount in the $25 to $30 million range. All investors who paid for shares may expect to receive a full refund by no later than October 31st. Investors may be invited to participate in a future offer “at the relevant time.”
Part of the share offer was listed on Equitise a “trans-Tasmanian” platform that operates in Australia and New Zealand.. This was to be their first large syndicated offer prepped for an IPO. According to the offer page, $106,140 was raised via smaller investors pursuant to New Zealand equity crowdfunding regulations.
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