EDEN-Redruth Investment - Executive Summary
In June/July 2018, Eden Land Planning Ltd. raised £2.24 million from 22 investors on the strength of a prospectus document called the Investors Presentation.
In July 2018, Eden used only two-thirds of the investment fund to purchase land at Redruth, Cornwall.
Eden and their lawyer, ELS Legal, led the investors to believe that the entire fund (except 2% fees) was applied to the acquisition of land at Redruth, Cornwall.
Immediately following completion of purchase, Eden quietly appropriated nearly one-third of the investment fund. (Best estimate, £661,750). The investors were never informed of this.
Two months later, through ELS Legal, Eden issued a Shareholders' Agreement for signature. Eden appears to believe this document retrospectively justifies their retention of a large portion of the tendered investment capital without the investors' knowledge.
Having effectively crippled their own project by withholding almost one-third of the investment fund, Eden has found it impossible to resell the land for a sum that would please the investors who still believe that 98% of their capital was used to purchase land, as described in the prospectus.
The land remains unsold after five years. The investors have had no returns. Eden continues to present the investors with "options" based on the untruth that the acquisition cost was £2.2 million. The true purchase price was £1,475,000 and the true acquisition cost (purchase price plus fees and taxes) was just under £1.6 million.
Links to other pages:
Detailed case study This expands on the Executive Summary with full details of the Redruth project.
A typical investment If you invested £100,000 what happened to your money?
Shares and Assets This page clarifies the relationship between Eden Land Planning Ltd. and Redruth Eden Ltd. and differentiates more clearly between tangible assets and company shares.
Redruth Eden Ltd - Accounts The company accounts were never distributed to the Shareholders but they were filed at Companies House and are public domain. The accounts are 'tailored' to conceal the transfer of £661k from Redruth Eden Ltd. to Eden Land Planning Ltd.
Open Letter to Directors This page sets out in stark clarity the financial and ethical misconduct in Eden's management of the Redruth investment project.
The effects of inflation The project was supposed to last 14 months. Now in its sixth year, inflation has become a major consideration.