Unicorn Asset Management Limited
Preacher’s Court, The Charterhouse,
Charterhouse Square, London EC1M 6AU
Tel: 020 7253 0889 Fax: 020 7251 4028
E-mail: [email protected]
www.unicornam.com
19 September 2014
Dear •
We are pleased to announce that the new offer for subscription (the “Offer”) in Unicorn AIM VCT plc (the “VCT”) is NOW OPEN to investors.
Please find enclosed the VCT’s Prospectus (including application form) and an accompanying brochure in relation to the Offer.
As a valued existing shareholder, we would also like to draw your attention to two exclusive offers:
1.
An attractive “early bird” fee discount as detailed below.
2.Invitation to our second VCT Shareholder Event at 11am on Thursday 13 November 2014 at Brewers’ Hall, Aldermanbury Square, London EC2V
7HR, where we will be providing an update on the VCT’s recent performance and the current Offer (invitation enclosed).
If you would like to invest, please see the “Next Steps” section at the end of this letter.
To reserve your place at the VCT Shareholder Event, please RSVP to the distributor, LGBR Capital:
•
•
•
By phone: 020 3195 7100
By email: [email protected]
By post: LGBR Capital, 8 Angel Court, London EC2R 7HJ
The Offer
As you know, the VCT was launched in November 2001 and, with net assets of £94.83 million at 31 August 2014, is the largest AIM-focused VCT in
the market. Unlike a new VCT, the VCT already has a diverse portfolio of investments in 68 companies with the potential to deliver capital growth and
tax-free dividends.
As the manager of the VCT, we continue to see attractive investment opportunities in companies seeking finance in a broad spectrum of sectors with
good growth and income prospects. In order to take advantage of these opportunities, the VCT is seeking to raise £15 million with an over-allotment
facility for a further £10 million through the issue of new shares pursuant to the Offer.
The closing date (unless fully subscribed earlier or the Offer being closed otherwise at the discretion of the Board) for applications for the 2014/2015
tax year is 12.00 noon on 1 April 2015 and for the 2015/2016 tax year is 12.00 noon on 30 June 2015.
This year, an allotment formula is being used through which the number of new shares to be issued to an investor will be calculated. This formula takes
into account the costs incurred by investors, whether execution only intermediary commission or initial adviser charges apply, or whether an investor
applies direct. The allotment formula continues to be based on the most recently published net asset value per share at the time of allotment.
Full details of the Offer are in the enclosed Prospectus. Potential investors should read and understand the Prospectus, including the Risk Factors on
pages 10 and 11, before making any decision to invest. If in any doubt, potential investors should consult an independent financial adviser authorised
under the Financial Services and Markets Act 2000.
The Opportunity
We believe that the Offer is an attractive investment opportunity for both existing shareholders and new investors for the following reasons:
•
Timing - the board of the VCT believes that there are a number of new investment opportunities in businesses, which have maintained a prudent
and conservative approach during the market fluctuations of recent years, and that now find themselves in a strong financial position from which
they are well placed to grow.
•
Established Portfolio - the Offer provides the opportunity for investors to access an existing portfolio, which has been performing well and is
already producing consistent returns earlier than might be achieved through an investment in a new fund.
•
Tax-Free Returns - the VCT has established a track record of making regular dividend payments to shareholders, having paid 5p, 5p and 6p per
share in the last three financial years. These dividends are tax free to qualifying investors.
Early Bird
Applications which are received and accepted by Friday 28 November 2014 will be eligible to receive a discount as follows:
•
1% for existing shareholders.
•
0.5% for new investors.
Further details of both of these incentives are set out in the Prospectus.
Tax Benefits
The VCT provides qualifying investors with access to the attractive tax benefits associated with an investment in a VCT. VCT qualifying investors will
receive up to 30% income tax relief on amounts subscribed (subject to a maximum investment in VCTs of £200,000 in a tax year, an investor’s tax
liability being reduced to nil and provided the new shares are held for at least five years). Distributions to VCT qualifying investors will also be tax-free
and capital gains exempt (subject to the annual investment limits).
Next Steps
In order to invest, please read the enclosed prospectus and complete the application form. Please be sure to tick the “existing investor” box on the
application form to take advantage of the Early Bird terms outlined above.
If you have any questions regarding the Offer you should contact your financial adviser or call the distributor, LGBR Capital, on 020 3195 7100. Please
note that neither the VCT, Unicorn AM nor LGBR Capital are able to provide you with investment, financial or tax advice.
We hope you will take the opportunity to participate in the Offer.
Yours faithfully
Chris Hutchinson
Director, Unicorn Asset Management
This document is an advertisement and not a prospectus. It has been issued by Unicorn Asset Management Limited and constitutes a financial promotion under Section 21 of the Financial Services
and Markets Act 2000. Any decision to invest in the Unicorn AIM VCT plc should be made solely by reference to, and strictly in accordance with, the information, terms and conditions contained in
the prospectus and application form. This document should not be regarded as constituting advice in respect of legal, taxation, investment or any other matters. Prospective investors are advised
to consult their bank manager, stockbroker, solicitor, accountant or independent financial adviser before considering any investment. Please remember that the value of shares and the income
derived from them can go down as well as up and you may not get back the full amount invested. In addition, there is no certainty that the market price of the shares will fully reflect their underlying
net asset value nor that any dividends will be paid. Past performance of the VCT and/or Unicorn Asset Management Limited is not a guide to future performance and there is no guarantee that
the VCT’s investment objectives will be achieved. Investment in the VCT should be considered a long-term investment. Issued by Unicorn Asset Management Limited, First Floor Office, Preacher’s
Court, The Charterhouse, Charterhouse Square, London EC1M 6AU, Authorised and Regulated by the Financial Conduct Authority.