Page 32 - Kavka Proposal Web

Part Five
Risk Factors

3. Risks Relating to the Realisation of the Investment the Financial Services Compensation Scheme. Similarly, the
Company is not authorised under FSMA, and investors will not
• THERE IS NOT ANTICIPATED TO BE AN EXTERNAL be able to claim under the Financial Services Compensation
MARKET FOR THE EIS QUALIFYING SHARES AND Scheme should the Companydefault.
TRANSFEREES OF EIS QUALIFYING SHARES MAY
NOT BE ABLE TO BENEFIT FROM EIS RELIEF. THE 5. Forward-Looking Statements
INVESTMENT SHOULD THEREFORE BE VIEWED AS
ILLIQUID AS THE EIS QUALIFYING SHARES ARE UNLIKELY You should not place undue reliance on forward-looking
TO BE READILY REALISABLE. YOU SHOULD BE ABLE statements, which speak only as of the date of this Brochure.
TO AFFORD YOUR CHOSEN LIFESTYLE WITHOUT ANY This Brochure includes statements that are (or may be deemed
FURTHER RECOURSE TO YOUR INVESTMENT. to be) “forward-looking statements”. These forward-looking
statements can be identified by the use of forward-looking
• It may be difficult to obtain accurate information about the
value of the EIS Qualifying Shares and the risks attached and terminology including the terms “believes”, “continues”,
you may lose the whole of your investment. ”intends”, ”thinks”, “may”, “will”, “would”, “could” or “should”
or, in each case, their negative or other variations or comparable
• If an Investor disposes of his EIS Qualifying Shares within terminology. These forward-looking statements include all
the EIS Qualifying Period applicable to those EIS Qualifying matters that are not historical facts.
Shares, such Investor may be subject to claw-back by HM Forward-looking statements involve risk and uncertainty because
Revenue & Customs of any Income Tax Relief originally they relate to future events and circumstances. Forward-looking
claimed, crystallisation of any deferred capital gains and the statements contained in this Brochure based on past trends
benefit of any CGT Exemption may be lost.
or activities should not be taken as a representation that such
• Shareholders holding between them a majority of the trends or activities will continue in the future.
Ordinary Shares may exercise a drag along right under the
Company’s Articles of Association pursuant to which they Subject to any requirement under applicable laws and
may trigger a trade sale of the entire issued share capital of regulations, neither the Company nor Daedalus undertakes to
the Company to a proposed third party purchaser, in which update or revise any forward-looking statements, whether as a
case the remaining Shareholders shall be obliged to sell all result of new information, future events or otherwise.
of their Shares to such purchaser at the same time and at
the same price as the other holders of the Ordinary Shares.
During the EIS Qualifying Period, this drag along right may
only be exercised on the condition that Shareholders receive
sale proceeds
• equivalent to at least 150% of their original investment. After
the expiry of the 3 year EIS Qualifying Period, the drag along
right is not subject to any minimum return for Shareholders.
4. Financial Services Compensation Scheme
The purchase of EIS Qualifying Shares is not covered by the
Financial Services Compensation Scheme established by the
FCA unless you receive advice from your authorised financial
adviser and you are an eligible claimant under the rules of

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