JAM Vehicles raising £2m for electric JIVR

JAM have featured here before. They dont do accounts - why bother? They just raise cash and spend it. Well the first part is what they claim.

Correction

It seems we may have been a bit fast to judge JIVR. We asked the company to explain all the things below and he said - 

Sales are going very well - no figures.

Accounts are very complicated due to various subsidies which he wouldnt name. They are late but so what.

The monies raised in 2016 was a mix of equity and notes - notes dont appear at CH until or if they are converted into equity or accounted for as debt in the annual accounts - which are te ones that are 5 months late. 

Who knows but the accounts when filed may give us a better clue. We think trying to raise £2m without them will be hard. 

The Jivr bike needs cash. Anyone reading this blog will know that. But wouldn't you think that a company trying to raise £2m in the private sector, would file accounts. Their accounts were due January 2017. Their filing record reads like the South Eastern Trains records - late late late.

In a new pitch deck dated 2017, the company claims to have raised over £1m last year, in two tranches. But this money isnt filed at CH. Could that be the reason for the accounts being sidelined?

JAM raised £160k on Crowdcube in 2014 and have struggled ever since. The directors' revolving office door has been spinning to The Swing. 

The new PD is littered with glossy pictures and quotes taken completely out of context. Substance almost zero. It's a neat enough design idea and has been generally well received but this looks very much like a case of the inventor turned CEO making a mess of things. 

Maybe go back to the Waltz lessons before you get into the Electric Jive. 

Is the JivR Bike an elaborate con?

Jam Vehicles who own the JivR Bike raised £160k on Crowdcube in 2013. The folding ebike is a great piece of design but also comes with a great big price tag and is not yet in production.

On their website, https://jivrbike.com/ , you can pay a small sum of Euro 99.00 to book your bike and then pay the rest of the Euro 2,499 when its ready. No time frame is given but we are told the deposit is refundable.

This all looks fine.

But then you should also know that the company, JAM Vehicles, is 5 months late with its accounts. Previous accounts showed the money had run out. A month or two is ok but five is more than careless? Maybe they are in the middle of a buyout?

For sure the money on deposit wont be returned if the accounts problem is genuine - so if you want a JivR Bike I'd be inclined to wait and see what happens.

The JIVR bike freewheeling journey could be coming to an end.

JIVR raised over £160k on Crowdcube in 2014. It also raised over £120k on Kickstarter - where they stated the estimated delivery was April 2015. To date nothing has been delivered and the accounts are overdue with a compulsory closure notice sitting on their file.

It is a great looking electric bike but at well over £2000 retail, I suppose it should be. We just wonder about its demand level.

Why the company cant manage to file the appropriate accounts on time isnt clear, but it does indicate that the team may not be very efficient.

When they pitched on Crowdcube in 2014, they gave a specific list of outcomes for 2016, the year they predicted they would sell the business. 

Forecasted valuation as of December 2016:

P/E    Valuation    1st Round Investors’ Stake   Equity Stake Valuation     ROI (pre-tax)

 15    £21,532,039                17.5%                          £3,768,106                 2,512%

 20    £28,709,385                17.5%                          £5,024,142                 3,349%

 25    £35,886,731                17.5%                          £6,280,177                 4,186%

Of course a PE ratio demands an E to make it work. They have no E except for the rather tenuous pre sales they are trying off their website. The accounts will show the extent of the damage if they are filed. Around £500k of new money was invested in 2016, so there is still hope. Probably best to put the Crowdcube pitch figures down as a joke in poor taste.