Forward looking statements
A pitch may contain forward-looking statements or assumptions which inter alia relate to future projections, prospects and developments. Forward-looking statements are identified by their use of terms and phrases such as “believe”, “could”, “envisage”, “estimate”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions. Any such statements are based on trends or expectations at the time of writing and are subject to risks and uncertainties that could cause actual outcomes to differ materially from those expressed or implied by those statements. Such statements should be regarded as illustrative expressions only which are believed to be reliable at the time of writing but should not be taken as implying any indication, assurance or guarantee that such trends or expectations are correct or exhaustive or will continue in to the future. Each reader must make their own independent assessment of the information provided in a pitch and seek independent, relevant and specialist professional advice prior to placing any reliance on it. These risk warnings are not a substitute for that professional advice and any such reliance is placed at your sole risk. Crowd For Angels makes no judgement or opinion of the likelihood of targets being achieved.
Loss of capital
Many small companies may fail. If you invest in a company through the Crowd for Angels platform, rather than seeing a return of capital or a profit, it is possible that you will lose some or all of your invested capital. You should not invest more money through the Crowd for Angels platform than you can afford to lose without altering your standard of living.
Investments in small companies made through the Crowd for Angels platform will be highly illiquid. It is very unlikely that there will be a secondary market for the shares or convertible loan notes of the company. This means that you are unlikely to be able to sell your shares until and unless the company floats on a securities exchange or is bought by another company. Even for a successful company, a flotation or purchase is unlikely to occur for a number a years from the time you make your investment. Convertible loan notes have to be held until maturity before they become repayable. There is no guarantee that the company will be able to make repayment of the convertible loan note and interest on the due date.
Rarity of dividends
Small companies rarely pay dividends. This means that if you invest shares in a company through the Crowd for Angels platform, even if it is successful, you are unlikely to see any return of capital or profit until you are able to sell your shares in the company. Even for a successful company, this is unlikely to occur for a number of years from the time you make your investment.
Investments in shares of private companies made through the Crowd for Angels platform are likely to be subject to dilution. This means that if the company raises additional capital at a later date, it will offer new shares of the company to the Crowd for Angels investors, irrespective of whether you accept any such offer, the percentage of the Investee Company that you own will decline. Any new shares issued may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to your disadvantage. Your investment may also be subject to dilution as a result of the grant of options (or similar rights to acquire shares) to employees of, service providers, or certain other parties connected with, the Investee Company.
Investing in shares or Convertible Loan Notes in Small Companies should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple companies rather than a lot in one or two companies. It also means that you should invest only a small proportion of your investable capital in either of these asset classes, with the majority of your investable capital invested in safer, more liquid assets. The FCA takes the view that any CfA Investor who makes an investment through the CfA Platform should be prepared to invest at least one thousand pounds (£1,000.00) in aggregate across one or more companies during the first year in which such person is a CfA Investor. In Executing the Membership & Nominee Agreement, you agree that if you make an investment through the CfA Platform, it will be your intention to comply with this FCA requirement and all other applicable FCA requirements. If you do not comply with this FCA requirement, We will not compel you to make further investments, but we may suspend or terminate your right to make further investments through the CfA Platform.
AIM Rule 26
Listed company pitches may contain information required to be disclosed by Rule 26 of the AIM Rules for Companies. It may contain information which has become out of date, and accordingly no reliance should be placed on the information or opinions contained in any such document or on its completeness and no undertaking, representation, warranty or other assurance, express or implied, is made or given as to the accuracy or completeness of the information or opinions contained in any such document and no responsibility or liability is accepted for any such information or opinions.