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.
- 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 Solar for Schools Community Benefit Society’s ability to repay the Bond on 31 October 2024, or at all, is dependent on the continued success of its business model.
- Security: The Bonds are an unsecured investment and will rank behind secured or preferential creditors. In the event of the Solar for Schools Community Benefit Society’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 Solar for Schools Community Benefit Society’s assets fail to cover all unsecured liabilities.
- Liquidity: Although the bonds are transferable the Bonds will not be traded on a recognised exchange and are therefore non-readily realisable.
- Long-term commitment: Applicants should consider investment in the Bonds as a long-term commitment until the Repayment Date as the original amount invested may not be available to them before the repayment date as there is no guarantee of repayment if a request is made to do so by the Bondholder.
- Bond redemption: Bondholders will have the contractual right to full redemption of their bonds at the end of the initial term. The Solar for Schools Community Benefit Society’s ability to repay the bonds at these points is dependent on it being able to secure finance from third parties and/or future bond investors. However, there is no guarantee that there will be sufficient finance available to repay all the bonds at this point.
- The Bonds are not covered by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).
- Past performance is not necessarily a guide to future performance: Events in the past, or experience derived from these, or indeed present facts, beliefs or circumstances, or assumptions derived from any of these, do not predetermine the future.
- 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.