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Gawcott Fields - OFFER CLOSED

2016 Bond offer - OFFER CLOSED

£250 minimum

Risk factors

All investment and commercial activities carry risk, and investors should consider whether Gawcott Fields community solar farm is a suitable investment for them in light of their own personal circumstances.

 This offer is not covered by the Financial Services Compensation Scheme.

The Directors believe the following risks to be the most significant for potential Bondholders. However, they do not necessarily comprise all those associated with an investment in the Bonds and are not intended to be presented in any assumed order or priority.

Risks associated with your investment

  • Capital Risk: Investment in smaller, new and unquoted businesses is likely to involve a higher degree of risk than investment in larger, established companies and those traded on a stock exchange. Investing in bonds is not the same as investing money in a bank account as your capital is at risk and you could lose up to, but no more than, your entire investment.
  • Repayment: an investment in a bond of this type is speculative and involves a degree of risk. The Company’s ability to repay the Bond by 10th February 2037 or at all is dependent on the continued success of its business.
  • Unsecured: the Bonds are an unsecured investment and will rank behind secured or preferential creditors. In the event of the Company’s financial failure, the Bonds would have the status of an unsecured creditor and may not be capable of being repaid in full or at all should the proceeds from a sale of the Company’s assets fail to cover all unsecured liabilities.
  • Liquidity: the Bonds will not be traded on a recognised exchange and are therefore non-readily realisible. Bondholders may be able to buy and sell Bonds on a matched bargain basis via, but applicants should be aware that there is no guarantee that a willing buyer will be found.
  • Long-term commitment: Applicants should consider investment in the Bonds as a long-term commitment until Maturity as the original amount invested will not be available to them except through trading via Ethex or early repayment at the discretion of the Company.
  • Financial projections: Hopes, aims, targets, projections (including the financial projections in this offer), plans or intentions contained in this document are no more than that and should not be construed as forecasts.

Risks associated with the project

  • Mechanical failure: Installations will be insured for damage, breakdown and loss of income in line with standard industry practice. However, there may be interruptions to the generation of electricity from the installations once built, caused by damage to or mechanic/electrical failure of equipment.
  • Solar PV performance: The Company’s assumptions around energy generation levels each year are based on site capacity and yield calculations provided by our construction partners and technical advisors based on methodologies commonly used by the industry. The project carries a minimum performance guarantee backed by a warranty bond. However, long-term changes to weather patterns and/or equipment underperformance may result in lower levels of electricity generation and therefore income.
  • Government legislation: The community solar farm has received full FiT accreditation with Ofgem which means the FiT rate of 6.16p/kWh is locked in for 20 years, increasing with inflation.
  • Electricity prices: The financial projections assume the Company will sell the electricity generated at the FiT export tariff rate, which increases annually with RPI. If wholesale electricity prices increase above the export tariff level and the project is switched to a market-based power purchase agreement, this could provide a future upside. However, there is also a risk that the export tariff could be reduced in future years, meaning that the export revenue of the Company may be reduced.
  • Bond redemption: Bondholders will have the contractual right to full redemption of their bonds at the end of the 20 year term. The Company’s ability to repay the bonds at the end of the 20 year term is dependent on the financial projects being achieved. The Directors are committed to managing the Company’s business with a view to ensuring that the Company is able to repay the bonds and the interest due on them. However, there is no guarantee that there will be sufficient funds available to repay the bonds at the end of the term or to meet the interest payments due to Bondholders each year. The Directors may also explore options for repaying Bondholders prior to the 20-year term, as explained above.

Download bond offer document here

Applied for to date, of
£500,000 target

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