Since being launched in 1994 the Enterprise Investment Scheme (EIS) has been successful in attracting investment into young and ambitious unquoted companies looking for funds to grow their operations.
As a method of persuasion, EIS offers a range of generous tax benefits, including income tax relief, loss relief and exemption from capital gains tax. However, in order to encourage long-term investment, the shares must be held onto for a minimum length of time, typically three years, before the tax reliefs can be claimed.
Many companies do not provide the opportunity for an immediate exit after three years due to their shares remaining unlisted or not being traded on an alternative secondary market. But investors looking for a potentially instant exit after the three year holding period might be interested in the latest pitch on the Crowd for Angels platform, Integumen.
Integumen is a personal health company developing and commercialising technology and products for the human integumentary system – the organ system that covers and protects the outside of the body including the skin, hair and nails. Its products are focussed on a number of areas including improving physical appearance, hygiene and general health outcomes.
The company was founded to focus on commercialising technologies which are at an advanced stage of product development, with several such products planned to be brought to market within the next few years. Its skincare range intends to focus on anti-ageing and blemish control solutions, oral care for hygienic purposes and wound care for treatment of chronic wounds.
Core products include the TS1 tongue sanitiser, which facilitates deep cleaning of the tongue and removal of bacterial plaque from the oral cavity, with over 560,000 units already sold. Labskin is the company’s human skin equivalent which can be used by pharma, cosmeceutical and personal care organisations to test products and product claims. Small scale commercial sales of the product were made during 2016, with customers including Estee Lauder, L’Occitane en Provence and GlaxoSmithKline.
TS1 tongue sanitiser
Integumen is now looking to raise funds on the Crowd for Angels platform (under the EIS scheme) as part of a wider £2.16 million pre-IPO fundraising. The money will be used for product development, sales & marketing and for working capital purposes.
Uniquely for a company going down the equity crowdfunding route, there will be an almost immediate exit route for shareholders, with an application having been made for admission to trading on the AIM market. If successfully listed investors should be able to sell their shares on AIM, assuming there is sufficient liquidity, although the EIS tax benefits mentioned above will be lost if they are sold before three year holding period is up.
To see the full Integumen pitch log in or sign up to Crowd for Angels and visit https://crowdforangels.com/company/Integumen-Ltd-133
Investing in small public listed or private companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Investing in debt pitches through Crowd for Angels (UK) Limited involves lending to companies and therefore your capital is at risk and interest payments are not guaranteed if the borrower defaults. Crowd for Angels is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own Investment Decisions. You will only be able to invest via Crowd for Angels once you are authorised. Please click here to read the full Risk Warning.
This email has been approved as a Financial Promotion by Crowd for Angels (UK) Limited (Company number: 03064807), which is authorised and regulated by the Financial Conduct Authority (Reference number: 176508). Investments made in companies listed on the Crowd For Angels platform are not covered by the Financial Services Compensation Scheme (FSCS).
*The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.