In March 2024, Australian beauty company Kester Black undertook a secondary share sale on Liquidise.
The problem
Kester Black, founded in 2014, undertook a $2.3 million capital raise via crowdfunding in 2020.
While the raise was successful, four years later founder Anna Ross found the complexity of the cap table was less than ideal, with some investors wanting to exit their investments and others wanting to increase their positions.
“I ended up with about six people who were desperate to sell because their personal circumstances had changed. I had other people who wanted to buy in. My lawyer said ‘don’t get involved, it’s too complex and onerous’.”
The solution
To solve these problems, Kester Black turned to Liquidise. Liquidise’s private market offers unlisted companies the ability to offer shares for sale and purchase in a listed-style environment with guaranteed liquidity and instant cash settlement.
The process
Liquidise offers guaranteed liquidity due to its unique structure. The market operates around a liquidity pool funded by prequalified investors, which pre-purchases the shares, ensuring a successful transaction. Kester Black participated in a third-party due diligence process to arrive at a share price valuation, then an agreed parcel of shares was purchased by the liquidity pool. The shares were then offered for trade from an agreed price point with pre-qualified and approved participants. For participants, the platform looks and feels like a retail share trading platform, and cash settlement is instant due to Liquidise’s use of digital settlement technology.
The outcome
Through Liquidise’s private market, Kester Black was able to quickly and easily reorganise the cap table, allowing existing investors to exit or acquire more shares.
“We had an excellent experience with Liquidise – the process was smooth, transparent and efficient. Liquidise is an ideal solution to the liquidity problem that all private company owners face, and we’re delighted to have been an early adopter of the platform.”
To find out more about how Liquidise can help unlock and manage equity for unlisted companies, visit www.liquidise.com.