Page 14 - Kavka Proposal Web

Part Two
Investment
Opportunity

9. Financial Overview - Financial Illustrations Each Shareholder’s return from the Company will be
determined by the value of the EIS Qualifying Shares
The below returns are set out for illustrative purposes upon their realisation. Following the expiry of a period
only and are not a reliable indicator of future of three years from the issue of EIS Qualifying Shares
performance. The calculations shown below are net of in the Company, the Directors may consider options
all related fees, charges, expenses and taxes and are for realising value of the EIS Qualifying Shares for
contingent on the performance of the Company over a Shareholders, having particular regard for the maximum
five year timeframe. No warranty as to future outcome redemption value for Shareholders. It is anticipated that
is implied or should be inferred. Investors’ attention after five years (Expected Minimum Period of trade)
is drawn to the information set out at the front of this there will be an opportunity for Shareholders to realise
Brochure and the specific risk factors referred to in Part the value of their EIS Qualifying Shares.
5 of this Brochure.

Low Case Target Case High Case
Cost of Investment £(100,000) £(100,000) £(100,000)
Income Tax Relief at 30% £30,000 £30,000 £30,000
Net Cost of Investment £(70,000) £(70,000) £(70,000)

Investment Proceeds £ - £272,500 £445,384
Share Loss Relief at 45% £31,500 £ - £ -
Total Return on Net Investment £(38,500) £202,500 £375,384
Total Return on Net Investment N/A 289.3% 536.3%

Average Annual Return N/A 57.9% 107.3%
Average Gross Annual Equivalent Return N/A 105.2% 195.0%

The ultimate amount a potential acquirer may pay for An Investment into the Company is high risk and an
the brand or Company is almost impossible to predict. Investor may lose all of their investment. Accordingly,
The amount will depend upon a number of factors potential investors are strongly advised to seek specialist
(the following is not intended to be an exhaustive advice to satisfy themselves as to the potential outcomes
list) including supply and demand at that time, the before making a decision to invest.
requirement of the potential acquirer for a tequila
brand, and the amount of good will that the brand had
attracted.
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