The Chief Executive of Ethiopian property developer and wholesale firm Purpose Black appealed this week for authorities to lift a weeks-long freeze on the company's bank accounts, saying it is violating the law and crippling its operations amid lingering funding questions.
"We are calling on them to lift this measure so we can resume normal business," said CEO Fisseha.
Purpose Black recently lost a deal to acquire valuable land in Mexico Square, where BGI Brewery has its headquarters, the intended site for its proposed 115-story Ke'Geberew Tower mixed-use skyscraper project.
Launched in 2021 by Fisseha, Purpose Black first made headlines with a direct farm-to-table supply business before shifting focus to real estate development.
Purpose Black pursued an unconventional public offering to finance its ambitious plans to build the 115 storey skyscraper. The first 1,000 shares it offered the public last year were priced at the steep seeming amount of 1.5 million birr each.
However, purchasers were enticed not only by potential long-term capital gains but also the promise that each share came bundled with title to a 100sqm, three-bedroom dwelling in the planned tower.
Purpose Black claimed to quickly sell these shares, raising 1.5 billion birr. However, its second opaque capital raise for another 750 shares, allegedly offered exclusively to select individuals at a heavily marked-up 3.5 million birr per share, drew suspicion.
While Purpose Black reported strong early public interest, questions emerged around the opaque second round. This has likely contributed to doubts and costing it the valuable Mexico Square land deal.
"We should not fear new ideas, let's give the benefit of doubt to ideas that seem crazy," Fisshea told reporters.
He added the ongoing three-week freeze by the Financial Intelligence Service exceeds the 72-hour limit allowed without a court order. He appealed for the freeze to be lifted so the company can resume normal operations.
