Company owners who raised money through embattled crowdfunding platform ArawakX sought to assure shareholders yesterday that their investments are safe and that their businesses are growing thanks to the investments shareholders injected.

Chef Kevin Culmer, owner of Tropical Gyros, and Dr. Danny Johnson, principal of Foot Care Rx, called into the talk show "Morning Blend Business" on Guardian Radio 96.9 FM yesterday to explain to host Dwight Strachan that despite winding up proceedings for ArawakX being started by the Securities Commission of The Bahamas (SCB), their companies are still trying to create value for the shareholders they obtained through crowdfunding on ArawakX.

The SCB began winding up proceedings of Mdollaz Ltd., trading as ArawakX, after finding via investigations and interviews that the crowdfunding firm is insolvent, commingled company funds with investor money, and sold Mdollaz shares without SCB approval, SCB Executive Director Christina Rolle said in an affidavit filed on Monday.

Culmer said he wanted to reinforce his investors' confidence in Tropical Gyros and contended that they are moving forward with growing the business.

"... We have been moving forward," he said.

"We submitted a six-month [update] required by the SCB to all of the investors based on the names and email address that we were given, to show everybody what we've done with the money that we took, that we got off the platform, where we going, as well as a six month financial report as well.

"We are separate and apart from ArawakX. We used ArawakX as a platform in order to crowdfund without a doubt. I'm starting to see what is happening right now. However, Tropical Gyros is still a viable business moving forward, and we are in compliance as best as we can with all that we're supposed to be doing."

Culmer invited anyone with concerns to get in contact with him.

He said he is disappointed to know that the platform has to be shut down, but credits ArawakX for enabling his quick expansion into two stores, a head office and a distribution center.

Johnson, who also called in after Culmer, echoed similar sentiments, explaining that Foot Care Rx plans to take care of its investors and grow the company thanks to the funds raised on ArawakX.

He said he calls his investors partners and allows them a free checkup every year as a benefit of being a shareholder.

"[We] want to convey to our shareholders ... we're a smaller, boutique medical idea that is doing really, really well. We take care of the diabetic foot, which is a epidemic in The Bahamas, and we have done two clinics off of our [fund] raise [on ArawakX]. They are beautiful," said Johnson.

"And [we want] our investors to know that we're on track. At the end of this year, we'll do our report of our first year, and I think they'll be really pleased and happy to see what's going on.

"Even before this had happened, we were having a conference at the end of this month, the 29th and 30th.

"One at the University of The Bahamas, where we want people to come and see what the science is doing and that it has scale.

"People who do crowdfunding are partners in your endeavor. The shares were only $10 each. But we've got some people who you know, that's all they could do, and then some people could do more."

Both Johnson and Culmer said they still have faith in the crowdfunding concept.

Johnson said at the end of this ArawakX debacle, people will likely be more educated and more informed.

"And I think people should invest more in local businesses," he said.

The post Business-owners who raised funds on ArawakX tells shareholders their investments safe appeared first on The Nassau Guardian.

The post Business-owners who raised funds on ArawakX tells shareholders their investments safe appeared first on The Nassau Guardian.

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