“We are true fanatics and Estonians to the core,” claims Swen Uusjärv about Investoriteliit.
According to Uusjärv, notions circulating about Investoriteliit that the company, which has been in business for over a year, is involved in embezzlement are mistaken. “That is not what we do. It is a myth that we have been trying to dispel.”
Uusjärv said that the wider objective of Investoriteliit is to acquire a small stake in the companies to which investors’ money is channelled. “The stake in the company should become liquid when the company is listed on the alternative market,” states Uusjärv.
You have said that there are three companies you are currently working with, i.e. to which you are channelling investors’ money, but you will not disclose the names of these companies. That is not a transparent way of doing things.
It will become transparent at a certain point. There is a company that we wish to place on the alternative market, there is some unfinished business wherein we are seeking approval for the investment prospectus from the Estonian Financial Supervision Authority (EFSA). Until approval is received, we are not ready to discuss the matter in detail. We were planning to publish the information in the autumn or at the end of the year, but there are have been some setbacks.
What kind of setbacks?
Stock investors and crowdfunding investors are used to doing things differently. Around 90% of investors do not have a securities account.
How many investors does Investoriteliit have right now? Are they your friends?
It has 60 investors, all unknown.
Last year, when you had just started your operations, you said that you were also applying for authorisation from the EFSA. How far along is that?
We have met with the EFSA twice. Currently, we qualify as a crowdfunding intermediary, which does not directly require regulation by the EFSA. We are planning to join the Code of Best Practice established by FinanceEstonia. Initially, we were not aware that our model is suitable for obtaining approval from FinanceEstonia.
Your website says that Investoriteliit is an investment service provider. This gives the impression that you are offering a verified serviced approved by the EFSA. However, the EFSA says that your website is misleading. How do you respond to that?
It is necessary to consider the nuances of what is misleading about it. Consider it in detail. Investoriteliit is certainly known to the EFSA. Our goal is to move towards becoming a crowdfunding portal.
Medical Pharmacy Group AS – what company is this and how is it linked to Investoriteliit?
Investoriteliit has a small stake in the company. That is the extent of our interest. It is one of the three companies for which we were seeking capital.
The owner of Medical Pharmacy Group AS through various other companies is your domestic partner Marre Naissoo.
That is a familial matter.
What is her role?
That is a familial decision.
Are you preparing to take this company public?
What type of company is it?
Our broader aim is to create a pharmaceutical company in Estonia. Currently, the company is a manufacturer of food supplements, but we are planning to seek authorisation from the State Agency of Medicines (SAM) to increase volumes. So, currently the company is not under SAM supervision? Not yet, authorisation from the SAM is only required starting from a certain production volume. It is the normal order of things. Initially, we are subject to supervision by the Veterinary and Food Board, from whom we received authorisation a few years ago. Is it not true that currently investors that use your services do not know which company they are investing in? Currently, our investors make their investments themselves in a specific company. Investoriteliit does not act as an intermediary in this. We are simply like a newspaper that puts two parties into contact. Where the investor invests is solely up to them to decide.
Is it a pyramid scheme?
That is the personal opinion of Madis Müür. Without proper attention people will come to the wrong conclusion.
Müür refers to Investoriteliit, but what about Medical Pharmacy Group?
Why do we want to expand share capital through public offering? So that the company would have strong equity capital for expanding to the necessary markets. Existing investors will be share investors.
You have said that the objective of Investoriteliit is to invest in Estonian businesses, but in reality you are investing the funds you have collected under the aegis of Investoriteliit into your own businesses, are you not?
We do need to start somewhere. If a company needs to be gotten off the ground, you need to start somewhere. We also have two other companies and these are not, so to say, linked to us. I do not see a conflict of interest here. It is simply the choice of a start-up company.
Is one of the other companies you have invested in ERS Future Energy OÜ?
No, it is not.
You said that you are preparing to take one of your companies public, but the Tallinn Stock Exchange claims that they have not been in contact with you. Who are you negotiating with?
If the information is not public, the Tallinn Stock Exchange will not comment on it. We have met with the management of the Tallinn Stock Exchange, both the previous and the current one. This has all been unofficial and will continue to be so until we have filed an official application with the EFSA’s prospectus. At present, we can not comment on it, because the procedure is pending.
Partner at Sorainen law firm
Investors come through Investoriteliit
We are the legal adviser of Medical Pharmacy Group AS (MPG) in connection with the organisation of the public offering and the listing of the company on the alternative market First North in Tallinn. We have also agreed to be the company’s adviser on the alternative market.
As with any capital raising, the public offering of MPG is a matter of timing. Thus, I cannot say exactly when the offering will take place – it is for the management to decide. Prior to the announcement of the IPO, it is not customary to discuss these things in detail and publicly.
As I am not the adviser of Investoriteliit, I cannot answer any questions about them. We have been in contact with Investoriteliit in connection with the preparation of MPG’s IPO, because the company is planning to use Investoriteliit to involve investors through crowdfunding.
Source: AS Äripäev, Alyona Statnik. Photo: Andras Kralla