Page 73 - Praetura EIS 2019 Fund Information Memorandum

Risk Factors

Advanced assurances will be sought from HMRC and Investors are advised to take appropriate independent Potential Conflicts of Interest
therefore Investee Companies activities should, at least professional advice on the tax aspects of their investment. Situations may arise where the interests of the Fund
initially, qualify under the EIS regulations. However conflict with the interests of other investors including
there is no guarantee that the formal EIS claims will EIS Tax Regime Change other funds managed by Rudolf Wolff, those of Rudolf
be agreed by HMRC, or that such agreement will not Investors should be aware that the tax reliefs regime may Wolff itself. The fund may invest in companies in which
be subsequently withdrawn. In those circumstances, also be changed in the future. other funds managed by Rudolf Wolff may invest or may
subscription monies will not be returned to Investors. already hold investments. Decisions made by the Fund
If an Investee Company fails to obtain EIS Qualifying Past Performance Manager may be more beneficial to one fund managed
Company status, or if it is subsequently withdrawn, EIS The past performance of Praetura Ventures, or related or advised by the Manager than to any other.
Relief and Capital Gains Deferral Relief would not be group companies or affiliates, is not necessarily a guide
available to Investors or could be withdrawn. Under to its future performance and may not necessarily be The Fund may co-invest with third parties or enter into
the EIS legislation, Qualifying Companies are required repeated. The value of investments and income from them joint ventures or other structures. Such co-investing may
to have employed 100% of their net funds (after the may go down as well as up and Investors may not get back give rise to the possibility that a co-investor or partner
deduction of issue costs) within 24 months after the the amount they originally invested in the Fund. may at any time have economic or business interests or
date of issue of Shares, except where the qualifying goals which are inconsistent with those of the Fund, or
activity consists of preparing to carry on a trade, in Forward-looking statements that such person may take action contrary to the Fund’s
which case the time limit is 24 months after the date of Investors should not place reliance on forward-looking investment objectives.
commencing the trade. If an Investee Company fails to statements. This document includes statements that are
employ this level of funds within the required deadlines, (or may be deemed to be) ‘forward-looking statements“, The entitlement of the Fund Manager to the performance
the Investee Company would be in breach of the EIS which can be identified by the use of forward-looking fee referred to in Schedule 2 of the Investor’s Agreement,
regulations and tax relief may be withdrawn. terminology including, but not restricted to the terms may create an incentive for the Manager to make
‘believes’, ‘continues’, ‘expects’, ‘intends’, ‘may’, ‘will’, more speculative investments on behalf of the Fund
A sale of Shares in an investee company within the ‘would’, ‘should’ or, in each case, their negative or other than it would otherwise make in the absence of such a
Three Year EIS period will result in some or all of the variations or comparable terminology. These forward- performance-based compensation arrangement. The
income tax and capital gains tax relief available upon looking statements include all matters that are not Manager may enter into fee sharing arrangements with
subscription for those Shares becoming repayable to historical facts. Forward-looking statements involve risk third party marketers, including placement agents, or
HMRC and in any capital gains on such Shares and any and uncertainty because they relate to future events and other advisors who refer Investors to the Fund, and such
deferred gain being subject to CGT. It is possible for circumstances. Forward-looking statements contained in
Investors to lose their EIS tax reliefs and/or Capital Gains this document, based on past trends or activities, should
Deferral relief and/or Business (Property) Relief by taking not be taken as a representation that such trends or 73
(or not taking) certain steps. activities will continue in the future.