What is the Bulletin Board?
The Bulletin Board connects investors who are looking to sell their investments with potential buyers who are looking to invest in previously funded projects. The seller can choose to connect with any of the bidders and agree a final sale. There are no costs for using the Bulletin Board, either as a seller or buyer.
Which Debentures can I sell?
There are no restrictions on selling Debentures, so you can sell any Debentures you own and negotiate a sale price with potential buyers.
Who can make a bid on the Bulletin Board?
You can make a bid on a sell offer if you have signed up for an Abundance account. Only people who have passed our identity and security checks will be able to make bids on sell offers. If you have not made an investment or bid before, you will be asked to complete this step before making your first bid.
What options do I have for paying for a Debenture?
You can pay for the Debenture in any way that you and your counterparty feel comfortable with but most people choose to use money in their Abundance account. You can deposit money to your account and ask Abundance to make the transfer of money to the seller at the same time as you inform Abundance about a concluded trade.
Alternative methods of payment might include PayPal, bank transfer or cheque. If you make payment using a method other than your Abundance account please remember to record proof of payment as we will need to see evidence before we record the transfer of any Debentures.
How do I decide on a price to sell or buy Debentures on the Bulletin Board?
There is no set price at which you should sell or buy Debentures on the Bulletin Board. A seller and buyer are free to negotiate the final price of any trade.
There are things you might want to consider when deciding how much Debentures are worth, both as a buyer and a seller:
- How many years has the project been operating for?
- Performance of the project to date – both in terms of energy generation and Cash Return payments.
- Trade history – at what price were previous trades for Debentures of this type concluded?
- How long until the next Cash Return is paid?
If I sell my Debentures, who receives the next Cash Return?
When you sell your Debentures, all rights to future Cash Return payments are passed on to the new owner of the Debentures.
If you sell your Debentures during a 6 month Cash Return Period, or after the Cash Return Period has ended but before the Cash Return Payment has been made, it will be the buyer who receives the Payment for that Period. You should therefore consider including the likely accrued Cash Return Payment as one of the factors that influence the price you want for your Debentures.
Are Bonuses transferred when a Debenture is purchased on the Bulletin Board?
A Pledge Bonus, which was previously offered to people who pledged their support to a project, is only transferred if they sell Debentures to a person who had also pledged to that project.
Conversely, any Early Bird Bonus is attached to a particular Debenture investment rather than the Debenture holder and is therefore transferred when a Bulletin Board trade is made.
What information about a potential buyer does a seller receive?
If you make a bid, the seller only receives the details of your bid, your name and your email address [linked to your Abundance account] so they can get in contact to discuss with you. They will not receive any other personal details, although you are welcome to give your phone number if you would like to discuss your bid over the phone with them.
How do I form a legally binding agreement to sell/invest Debentures?
You cannot conclude a trade directly on Abundance. Once a bid has been made on a sell offer, the bidder and buyer are free to negotiate to conclude a final trade.
There should be a legally binding agreement between you and your counterparty. This can take many forms — a single email, an email exchange culminating in an agreement, or a full-blown written document — but it must be in writing. It is essential that you record in writing the evidence of the agreement, so that, should a dispute arise regarding the transaction, there is evidence of what was agreed.
What is Abundance’s role in a Bulletin Board trade?
The Bulletin Board is a place to connect sellers and potential buyers of existing Debentures. A final price and trade agreement can then be agreed directly between the seller and buyer. Abundance is the registrar of Debentures and we will make sure both the buyer and seller are happy with the trade agreed before we update the Debenture register. However, Abundance cannot be held responsible or liable for any disputes stemming from trades that have come about due to introductions made through the Bulletin Board. If you have any concerns about conducting a trade or the terms of any binding agreement to buy or sell Debentures, please speak to a lawyer. You may consider it important to obtain legal advice in particular if you are selling a large quantity of Debentures.
Is there any stamp duty on secondary trade of Debentures?
The Debentures are exempt from any liability to stamp duty and SDRT on the occasion of any sale of a Debenture. If, unexpectedly, any such liability were to arise, the rate of stamp duty or SDRT potentially payable by the buyer on the purchase price for the Debenture would be 0.5%. If we become aware of any such liability, we will tell you about this and the arrangements for payment of it.
Bulletin Board code of conduct
Abundance expects members who are using the Bulletin Board service to treat each other with respect and conduct their trades in a courteous manner. If either a buyer or seller feels that another party is not using the system appropriately or is being abusive, please report this to Abundance immediately and we will investigate the matter. Abundance reserves the right to revoke a person’s membership if such claims are substantiated.