Uprise.Africa, the SA-based blockchain micro-lending platform has decided to refund all the 288 shareholders who invested in their crowdfunding venture last year. The investment decision was arrived at by the 288 shareholders who took part in the startup Sun Exchange.
The blockchain-embedded solar panel startup had raised over R4.2-million in a campaign that ended on November 30. The startup made the unprecedented move after experiencing delays with the Reserve Bank and Companies and Intellectual Properties Commission (CIPC).
Many attribute the sudden steps to the African Crowdfunding Association (ACfA) announced a review of the company in their platform. The expose done by Ventueburn brought a lot of controversy over an alleged fake pledge given by Uprise.Africa.
In their recently released statement, the firm attributed the new development to the Covid-19 lockdown that limited access to government. They were at the last step of filing with the CIPC – right before a formal public offering. With that in place, they would have pursued a prospectus and subscription agreement.
Abraham Cambridge, Sun Exchange founder, communicated with Ventureburn acknowledged having discussions with the group last week. He gave credence to the announcement made by Uprise.Africa in regards to shareholder concerns, but also pointed out their delays in getting approvals from the SA Reserve Bank. The refund will now emanate from Uprise.Africa trust accounts. Abraham pointed out his displeasure on how ” the deal did not ultimately go through.” He expressed how Sun Exchange worked with Uprise.Africa to prepare a “prospectus and share subscription agreements.”
In a statement released yesterday, Uprise.Africa revealed that ACfA had completed its review and was “satisfied” with its performance. ACfA is yet to release a statement confirming the same.