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DWF advises innovative crowdfunding platform PrimaryBid.com on offers

Legal business DWF has advised PrimaryBid.com, the leading online funding platform that enables investors to gain access to equity capital raises of AIM-listed companies, on its £26.9million underwritten placing of shares in Sound Energy plc ("Sound Energy"), the Europe and Africa focused upstream gas company.

The offers, which were announced on 24 November 2016 and described as "the first time punters have been offered the same terms as institutions" by the Evening Standard, were 12% oversubscribed by investors through the PrimaryBid platform and resulted in the deal size increasing by a further £2.8million. These are the latest fundraisings through PrimaryBid, which has been a DWF client since its inception four years ago.

Unlike regular crowdfunding opportunities, PrimaryBid enables private investors to participate in fund raising exercises for listed equities in a unique way that overcomes the historical challenges presented by market structure and the regulatory environment. Placings, which are made through PrimaryBid, are driven by investor demand and are ordinarily carried out in association with a cornerstone investor, giving other investors the opportunity to participate in an existing transaction.

The DWF team was led by partner and National Head of the Financial Services sector, Richard Tall, with support from corporate solicitor Sophie Morris who provided advice on the regulatory regime and legal infrastructure of the platform.

Richard Tall comments: "Having worked with PrimaryBid regularly for four years now, we were delighted to have the opportunity to advise them on these innovative offers. The reaction from the market has been tremendous and hopefully PrimaryBid will see more such transactions in the near future."

Kieran D'Silva, Co-founder & CFO of PrimaryBid comments: "We are delighted that fair allocation had finally become a reality. I have worked with Richard and his team for several years and they have been instrumental in getting PrimaryBid to our current stage. Richard has a truly unique way of navigating the regulations and applying them to innovative platforms like PrimaryBid.com while ensuring we retain a robust approach to legal and compliance."

DWF's 180-strong national corporate practice is consistently ranked one of the most active in the UK by deal volume. DWF advises a number of crowdfunding, peer-to-peer and other trading platforms and has significant experience in the regulatory environment in which platforms operate.

Richard Tall

Partner - National Head of Financial Services

I am an experienced corporate lawyer with an in-depth expertise in financial services.