Investing in Qualifying Shares through the Service involves a high degree of risk, and may not be suitable for all Investors.
Therefore, it is important that you read and understand the detailed risk factors relating to an investment in the Service, as set out in the Brochure, which include the following:
a) Share prices, their values and the income they generate through dividends can go down as well as up and Investors may get back less than their original investment.
b) Past performance is not a guide to future performance; the extent and value of any tax advantages or benefits arising from the use of tax -advantaged services such as EIS will vary according to the individual’s circumstances.
c) Tax, legislation, rules and practice may change.
d) Early encashments may lead to some loss of capital and/or tax reliefs.
There is a limited period during which you have the right to cancel your Subscription. If you wish to exercise this right to cancel, you must notify the Manager in writing within 14 days of the Manager accepting your Application Form
Loss of capital
Most startups fail, and if you invest in a business through Films 4 U, it is significantly more likely that you will lose all of your invested capital than that you will see a return of capital or a profit. You should not invest more money through the platform than you can afford to lose without altering your standard of living.
Potential investors should note that an investment through Films 4 U is subject to market fluctuations and there can be no assurance that any appreciation in value will occur. The value of investments and the income from them can fluctuate and may fall and there is no certainty that an investor will get back any part of his investment. Any investment made through Films 4 U should be viewed as a long term and illiquid investment. Investors’ interests are unsecured and rank subordinate to the interests of all creditors.
In the event that a company becomes unable to meet its debts as they fall due, investors may realise less than their original investment. The price which investors may realise for their investments and the timing of any such realisation may be influenced by a large number of factors, some of which are specific to the investment and others of which are extraneous. The ability of an investor to sell shares will depend on there being a willing buyer for such shares at an acceptable price. Consequently, it might be difficult for an investor to realise his investment.
Rarity of dividends
Startups rarely pay dividends. This means that if you invest in a business through Films 4 U, 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 investee company. Even for a successful business, this is unlikely to occur for a number of years from the time you make your investment.
Any investment you make through Films 4 U is likely to be subject to dilution. This means that if the business raises additional capital at a later date, it will issue new shares in the investee company to the new investors, and the percentage of the investee company that you own will decline. These new shares 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 to, or certain other parties connected with, the investee company.
Lack of operating history
Many Films 4 U investee companies are recently formed entities and have no substantive operating history upon which prospective investors can evaluate likely performance.
Investing in startups should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple businesses rather than a lot in one or two businesses. It also means that you should invest only a small proportion of your investable capital in startups as an asset class, with the majority of your investable capital invested in safer, more liquid assets.
Dependence on the directors
The success of many Films 4 UdicateRoom investee companies will depend in part upon the ability of their directors to develop and maintain a strategy that achieves the company’s investment objectives.
Shares in Films 4 U investee companies are not and will not be listed on a recognised market in the short to medium term and a secondary market in such shares is not expected to develop. Consequently, it may be difficult for an investor to sell shares and investors may receive less than the amount invested. Share prices may also be subject to fluctuation.
Tax treatment of shares
Tax reliefs are not guaranteed, depend on the entities invested in maintaining their qualifying status, and may be withdrawn at any time by HM Revenue & Customs.
The tax treatment of EIS and SEIS schemes depends on the individual circumstances of each client/investor and may be subject to change in future.
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.
Forecasts are not a reliable indicator of future performance