On 11th April 2019 Kevan Halliwell sent out an Ourspace CEO Update email. He is handing the hat around once again to the poor investors who have invested $30m into his companies. He has turned that $30m into $4m in the space of little over two years through his workspace ponzi scheme. This time he is claiming that unless they give him another $2.5m everyone will be left with nothing. Given Mr Halliwell’s propensity to restructure investments which result in a far worse situation for investors we would urge extreme caution before committing any more money to his ventures. Investors should demand that he provides a legal opinion from a reputable firm to confirm that what he says is true. He is a proven liar seeking only to protect himself from prosecution.
Halliwell’s offer is that investors will own just less than 50% of a new company for the investment sum of $2.5m. Yet again, Halliwell will control the company. That investment would value the new company at $5m. He says “The equity investment is coming to you at a massive discount to the book value of the company assets…..” That is simply Kevan Halliwell trying to trick investors. “Book value” does not mean true value. It means that this is a false figure made up by Ourspace to make it look like they have assets worth a lot of money. The administrators who are handling the administration of OurSpace Investments Ltd have said that Ourspace has a book value for the two leases of $25m. That sounds really great, but the administrators have also said that they expect to be able to sell those leases for only $4m. The leases are worth $21m less than the book value claimed by Ourspace. This latest email from Kevan Halliwell is carefully worded to avoid any mention of the true value of the leases.
Does anyone actually trust the word of Kevan Halliwell. He is facing court action in the UK and in Dubai. Another one of his companies, Ourspace (Leeds GS) Ltd, was recently forced into liquidation by its creditors. They are facing losses of around $1m and there are no assets whatsoever to show for that money. This is in addition to the $30m lost in the other sites.
We would expect the bulk of the $2.5m he intends to raise to be used to defend himself from legal actions. Before he raises any more money he should explain to investors how he has blown more than $30m of their money with only two leases valued at $4m to show for it.