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RISK WARNING

Your personal decision to invest

A decision to invest in a company is a personal decision by you and that no responsibility for the consequences of that decision is accepted by Share In Ltd ("ShareIn") or by any of its directors, agents, employees or other members.

To invest through ShareIn you need to understand the following important risks:

Losing all of your investment

Investment, whether in new or existing businesses, carries high risks as well as the possibility of high rewards. Accordingly each investor should consider very carefully whether such investments are suitable in the light of personal circumstances and commitments and the financial resources available to each Investor. ShareIn does not promise any return on investment nor that the value of any investment will be maintained. Engaging in any investment activity may expose you to a significant risk of losing all of your investment.

Most of the investee companies which are listed on ShareIn are new companies with limited if any track record. These companies will provide information such as their business plan and financial forecasts. Please be warned that these documents are not guarantees that the relevant company can achieve what it is hoping to do. Equally the information provided may state certain facts and statements, and again please be warned that ShareIn is not responsible for checking the accuracy of these facts and statements (which may not always prove to be true or complete).
If a company you invest in fails, neither the company – nor ShareIn – will pay back your investment.

No established market – lack of liquidity

As an investor you should be aware that no established market exists for the trading of shares in private companies (which the companies that are listed on the ShareIn Website are), and such shares are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.

Lack of dividends

The companies pitching on ShareIn are early stage companies, and these companies will rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares. Profits are generally re-invested into the company to fund growth. Companies have no obligation to pay shareholder dividends.

Possibility of dilution

All companies who pitch through ShareIn offer Ordinary Shares, which include pre-emption rights that protect an investor from dilution. Companies must give shareholders the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Dilution affects shareholders who do not buy any of the new shares being issued. As a result an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’. This has an effect on a number of things, including voting, dividends and value of shareholdings.

The need for diversification

Diversification by spreading your money across multiple investments will reduce risk. Investors should only invest a proportion of their available investment funds via ShareIn due to the high risks involved.

Tax reliefs and savings may not materialise

ShareIn does not guarantee that Enterprise Investment Scheme ("EIS") tax relief, SEED EIS tax relief or any other type of tax relief shall apply in respect of any investments made by you as an investor in companies via the ShareIn Website. ShareIn recommends that you take your own tax advice on any investments which you make via the ShareIn Website.

ShareIn does not make personal recommendations and does not promise that a particular investment will be suitable for the individual circumstances of an investor.

Please note that just because a company has obtained an advance clearance from HMRC to confirm that it is for example an EIS qualifying company, it must be noted that the company can subsequently lose this status if it does not spend the investment in a prescribed way or it changes its business or share structure in a way which is contrary to the relevant tax rules. Furthermore if the investee company goes to a successful exit event within three years (which you may have no control over) then the benefits of EIS tax relief will not apply. If the investee company is required by a majority of its investors to enter into a shareholders’ agreement then there are standard provisions to help ensure that any tax relief is maintained but it should be noted that this cannot be guaranteed as a complete safeguard in itself.

 

Investing in an early stage company such as Hochanda Limited involves risks including loss of capital. This means there is a risk that you could lose some or all of the money you put in. Hochanda Limited shares are not listed or traded on any recognised exchange. This means you will not be able to easily sell your shares if you need to get your money back quickly.

Before deciding to invest CLICK HERE to read the full risk warning

This material has been approved as a financial promotion by Share In Ltd, which is authorised and regulated by the Financial Conduct Authority (no. 603332). This share offer is not an offer to the public. Investment can only be made by registered investors on the basis of information provided by Hochanda Limited. Share In Ltd takes no responsibility for information provided by Hochanda Limited.