Hi James, as the agreement with Kinn is only a pilot for the...

Hi James, as the agreement with Kinn is only a pilot for the first 6-months I would not expect Crowd to invest in the 3PL arrangement at this time.

Once it is confirmed though, sure there would be associated inventory holding and transport costs. My understanding of the Agreement is that the stock is purchase outright and then is paid for on commercial terms, whether sold or not. ie the agreement is not on a Consignment basis.

If they are already seeing sufficient traction with the business then perhaps it is a foregone conclusion that they will proceed and now is a good time to raise capital as these costs will surely arise.

Any successful business needs capital to run its operations, so I have no problem with them asking for the funds.