Important Updates from Crowdbase - Renunciation of CIF License & Addition of Nominee

Dear Crowdbase Community,

We have some significant updates we'd like to share with you regarding enhancements to our platform and services:

1. Voluntary Renunciation of our Cyprus Investment Firm (CIF) License
2. Introduction of the Nominee Structure into our Investment Process

Continuing Our Journey Under the Crowdfunding Service Provider (CSP) License

Voluntary Renunciation of Our CIF License

As part of our commitment to streamline operations and focus on providing you with the best crowdfunding experience, we have voluntarily renounced our Cyprus Investment Firm (CIF) license.

Why are we making this change?

• Alignment with Regulatory Developments

  When we launched Crowdbase in 2021, the European Crowdfunding Regulation was not yet finalised. To provide our services legally and effectively, we obtained a CIF license, which allowed us to operate within the existing regulatory framework at that time.

• Adoption of the European Crowdfunding Regulation With the European Crowdfunding Regulation coming into effect, providing a dedicated regulatory framework for crowdfunding platforms like ours, we promptly aligned ourselves with the new standards. In November 2023, we acquired our Crowdfunding Service Provider (CSP) license, which is specifically designed for our operations.

• Focus on Specialised Crowdfunding Services

  The CSP license enables us to offer all our core services more efficiently and under a regulatory framework tailored for crowdfunding activities. As a result, maintaining the CIF license is no longer necessary for our operations.

What does this mean for you?

• No Action Required We have not made use of our CIF license in 2024, and all your interactions and transactions with Crowdbase are conducted under our CSP license. Therefore, there are no changes to your account or investments, and no action is needed on your part.

• Your Investments Are Secure

  Crowdbase does not hold any client funds or financial instruments under the CIF license. All your funds and investments are managed under the CSP license, ensuring they remain fully secure and accessible.

• Questions or Concerns If you have any questions or need further clarification regarding this change, please feel free to reach out to us at [email protected].

Introducing the Crowdbase Nominee Structure

We are excited to announce the inclusion of the Crowdbase Nominee Services Ltd ("Nominee") into our investment process. This enhancement is designed to simplify and improve your investment experience on our platform.

What is the Nominee Structure?

The Nominee is an entity that will act as the legal owner of the investment securities on your behalf. While the Nominee holds the securities, you remain the beneficial owner, retaining all rights to dividends, profits, and asset appreciation.

Benefits of the Nominee Structure

For Investors

• Streamlined Communication

  The Nominee facilitates efficient communication between you and the companies you invest in, ensuring that your inquiries and interests are represented effectively.

• Representation of Your Best Interests

  By acting on your behalf, the Nominee ensures that your rights as an investor are safeguarded and that you are kept informed about important developments.

• Closer to a Secondary Market

  Holding securities through the Nominee simplifies the process of transferring shares, bringing us a significant step closer to launching a secondary market. This future feature will make buying and selling shares more straightforward and accessible.

For Companies

• Simplified Cap Tables

  Companies benefit from having a single shareholder entity (the Nominee) on their cap tables, reducing administrative complexity and allowing them to focus more on growth and development.

• Efficient Investor Relations

  With the Nominee as the primary point of contact, companies can communicate updates and information more effectively to all investors represented by the Nominee.

Updates to the Crowdbase Agreement

To reflect the inclusion of the Nominee structure, we have updated the Crowdbase Agreement for the Provision of Crowdfunding Services.

• Please Review the Updated Agreement

  We encourage you to read the updated agreement to understand how these changes enhance your investment experience. Click here to view the updated agreement.

Next Steps and Support

• No Immediate Action Required

  Your current investments and access to the platform remain unaffected. The introduction of the Nominee structure is designed to enhance your experience without requiring any additional steps from you.

• We're Here to Help

  If you have any questions or need further clarification about these updates, please do not hesitate to reach out to our team at [email protected].

• Filing Potential Complaints Your satisfaction is important to us. If you have any concerns or wish to file a complaint regarding our services, please contact us at [email protected], and we will address your concerns promptly.

Closing Remarks

We appreciate your continued trust and support in Crowdbase. Our mission is to provide you with innovative investment opportunities and the best possible service. These updates are part of our ongoing efforts to enhance your experience and bring you closer to exciting future features like the secondary market.

Thank you for being a valued member of our community.

Best regards,

The Crowdbase Team