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Thera Trust

Thera 2015 Bond

Risk factors

All investment and commercial activities carry risk, and investors should consider whether Thera Trust is a suitable investment for them in light of their own personal circumstances.

Supporting the purpose of the Thera Trust should be the primary motivation for investment, and investment in the Trust should be seen as a long-term social investment. An investment in Thera Trust is an investment in a trading business and is not a loan or deposit.

 


Risks associated with your investment

  • This investment is not suitable for those who require a guaranteed income or ready access to capital.
  • Interest payments are not guaranteed.
  • It may not be possible to find a buyer for your bonds should you wish to sell them.
  • Descriptions of possible returns are illustrative only. There are variable and uncertain factors associated with any project.
  • If the Company is unable to meet its debts and other liabilities, you could lose up to the whole amount held in bonds (but no more than that amount).
  • If the company cannot raise the capital the bond may not go ahead.

Risks associated with the business

  • Investing in Thera Trust Bonds is not the same as depositing money in a bank account as your capital is at risk and you may not get back the full amount that you invested. The Bonds are not covered by the Financial Services Compensation Scheme.
  • The Bonds have a fixed repayment date and investors will have no ability to require Thera to repay their capital before the repayment date (save in the event of default by the Charity). Although the Bonds are transferable and are capable of being sold on a matched bargain basis facilitated by Ethex, there is no certainty that there will be a buyer for the Bonds, nor what price they will pay. Investors should therefore only invest if they are prepared to wait until the scheduled repayment date on 31 December 2020 to receive their capital.
  • Thera’s ability to repay the Bond on 31 December 2020 or at all is dependent on the continued success of its business model and any refinancing. The Board of Directors are planning to refinance the Bond in 2020 through a combination of retained cash reserves and new bank debt secured against the freehold property portfolio.
  • The Bonds are an unsecured investment and will rank behind the existing bank loans for security purposes. In the event of a financial failure of Thera, 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 assets of the Charity fail to cover all secured and/or unsecured liabilities. However the Bond includes an Interest cover and Asset cover Covenant which seek to limit the Group’s ability to take on additional bank debt.

This list is not necessarily comprehensive and you should read the entire Bond offer document and the terms and conditions to consider other risks which may impact upon your investment.

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