Baronsmead Offers for Subscription
Baronsmead Venture Trust plc and Baronsmead Second Venture Trust plc (“BVT”, “BSVT” or the “Companies” and each a “Company” respectively) offer for subscription to raise up to £45 million in aggregate before costs (the “Offers”)
Full details of the Offer are contained in the prospectus (the "Prospectus") issued by the Companies, dated 4 October 2017. The Prospectus is available by clicking on the following link (opens a PDF):
BVT’s Offer became fully subscribed during the course of 3 November 2017 having raised £21 million. In accordance with the terms of the Offer investors whose Subscription Forms are received after this time will have their Subscription automatically allocated to BSVT’s Offer, unless the investor has specifically stipulated on the Subscription Form that they do not want this to happen.
BSVT’s Offer remains open, having raised a total of £18.2 million of the £24 million being sought as at the close of business on 10 November 2017 and has been extended to 12 noon on 29 December 2017, unless fully subscribed and closed beforehand.
The next allotment of shares under BSVT’s Offer is due to take place on 17 November 2017.
Subscriptions will be processed on a "first come, first served" basis. Investors who wish to participate in BSVT’s Offer should return a completed Subscription Form to the Receiving Agent, as set out in the Prospectus, as soon as possible.
Prospective investors should read the Prospectus in full. If you are in any doubt as to what action you should take, you are recommended to consult a person authorised under the Financial Services and Markets Act 2000 to provide investment advice.
The subscription form is available by clicking on the following link (opens a PDF)
Each Company is a Venture Capital Trust ("VCT"), which is a particular type of investment company. The VCT regime was established by the UK Government with the intention of encouraging individuals to invest indirectly in a range of small higher-risk trading companies whose shares and securities are not listed on a recognised stock exchange. Investments in VCTs are high-risk and for the long-term.
This web page, which constitutes a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000, has been approved, for the purposes of that section only, by Livingbridge VC LLP which is authorised and regulated by the Financial Conduct Authority (“FCA”). Registered office address: 2nd Floor, 100 Wood Street, London, EC2V 7AN. Livingbridge VC LLP is a limited liability partnership registered in England No OC320408.
Past performance and risk of loss of capital
The past performance of each Company is not a reliable indicator of its future performance. The value of a VCT depends on the performance of the underlying assets. The value of the investment and dividend stream from each Company can rise and fall. As their capital is at risk, shareholders may get back less than originally invested, even taking the tax reliefs into account. There can be no guarantee that each Company’s investment objective will be achieved.
Investment and market risks
Each Company may invest in unquoted, AIM-traded and ISDX traded companies. Investment in unquoted, AIM-traded and ISDX traded companies by its nature involves a higher degree of risk than investment in companies traded on the main market of the London Stock Exchange. The market for stock in smaller companies is often less liquid than that for stock in larger companies, bringing with it potential difficulties in acquiring, valuing and disposing of such stock. Full information for determining their value or the risks to which they are exposed may also not be available. The valuation of each Company’s investments and opportunities for realisation depend on stock market conditions. Each Company’s investments may be difficult to realise. The fact that a share is traded on AIM or ISDX markets does not guarantee its liquidity.
The market price of the shares in each Company may not be fully reflected in its underlying net asset value. Although the shares of each Company will be listed on the London Stock Exchange’s main market for listed securities, there may not be a liquid market for each Company’s shares (which may be partly attributable to the fact that initial tax reliefs are not available for VCT shares generally bought in the secondary market and because VCT shares usually trade at a discount to NAV), the price of each Company’s shares may be volatile and shareholders may find it difficult to realise their investment.
Tax related and legislative risks
The current VCT tax reliefs may change during the time the shares are held and can be retrospective. The value of the tax reliefs depends on the personal circumstances of the investors, who should consult their own tax advisers before making an investment. There can be no guarantee that the Company will retain full VCT status which could lead to adverse tax consequences for investors, including a requirement to pay the 30% income tax relief.
In November 2016, the UK Government announced a review to identify and tackle factors affecting the supply of “patient capital” to high growth businesses. In March 2017, the UK Government announced that the review of patient capital would be extended to include a review of venture capital schemes (which include VCTs). The findings of this review and the resulting changes to the supply of patient capital are expected to be included in the 2017 Autumn Budget which will be announced on 22 November 2017. As a result, there may be changes to the restrictions on the types of investments that VCTs can make or other adverse changes to the VCT scheme. The extent of these changes is not yet known.
Livingbridge VC LLP does not give investment advice. If you are in any doubt about whether investment in the Offer is suitable for you and wish to obtain advice please contact an authorised financial adviser.