The Risks

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Advice

An investment in a company may not be appropriate for all investors and you should seek independent advice and carefully consider all of the information set out in the Information Memorandum. Deal Partners cannot advise on whether you should invest in this product.

Exit

Opportunities for EIS shareholders to dispose of their shares are likely to be severely constrained and there will be no external market for such shares. Given the nature of the business, any exit will be dependent on the value of the remaining revenue stream.

Liquidity

When making an EIS investment, you commit your money for a minimum of three years (the qualifying period) and thus you need to think carefully about whether you can afford this investment.

Tax Rates

Any changes to the bases of taxation, tax relief, rates of tax or an investor’s tax position may affect the availability of tax relief and may affect returns.

Shares

Shares will be ‘full-risk’ ordinary D shares, with no preferential rights to dividends, or to the Company’s assets in the event of a winding up. There will be no arrangements to protect the investor from the normal risks associated with investing in shares, and no arrangements for the shares to be purchased by anyone else after the end of the relevant period.

EIS Approval

At the time of investment, we believe that Deal Partners will qualify for EIS. There is no guarantee, however, that the Company will remain EIS-qualifying at all times or that EIS tax reliefs will be available to investors. Failure of a qualifying company to meet the requirements of EIS legislation could result in the withdrawal of EIS tax benefits that have already been obtained and the requirements to repay any rebated tax. There is no guarantee as to the timing of the availability of the EIS3 certificates required to claim EIS tax benefits.

Past Performance

Historical facts, information gained from experience, present facts and information and assumptions made from any of these, are not a guide to the future. Aims, targets, plans and intentions and projections are just that – they are not forecasts.

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