Become a Shareholder in TOWN
TOWN is a year old and we’re selling some shares.
We’re looking to raise £400,000 of new equity from 20 shareholders. If you might have £20,000 to invest (£14,000 after EIS rebate) in our beautiful restaurant, bar and event space, keep reading.
What’s the Deal?
We would like to find just 20 shareholders, each with £20,000 to invest (or two friends/family members can own the shares jointly for £10,000 each – £7,000 each after EIS rebate).
Shareholder benefits:
If you use your full shareholder entitlement, you will benefit from an annual and indefinite credit/discount of £7,000.
If you would like to invest or have any questions, please contact founders@town.restaurant, and if this isn’t for you, please pass it on to someone else who may be interested.
The Small Print
Our new shareholders will own 8% of the equity – two shares for £20,000 – which values the business at £5m.
There is a £5,000 annual limit on the value of the 50% shareholder discount.
The £2,000 PDR lunch credit can be applied to no more than two private lunches at TOWN or MOTORINO.
TOWN is EIS approved and, if you are a UK taxpayer, you can claim 30% of your investment back as a rebate against tax paid in the current and/or previous tax years. An EIS investment also benefits from EIS loss relief, which essentially means that HMRC will underwrite around 60% of your investment against tax you have paid. This is useful to have, but less of a concern given that TOWN is already established.
Now that the basement private dining rooms and event space have been completed, we’ve spent a total of £4.35m to get TOWN open and operating. Turnover for the first 12 months was £3.9m and we made a small profit of £134,000. With the new PDRs and event space (doubling the size of the restaurant), we expect annual sales for year two to exceed £5.5m, and we hope to make a profit of at least £600,000.
EIS Investment — Risk Warnings and Risk Factors
- Capital at risk. You could lose the entire amount invested, including after any tax relief.
- Illiquidity. The shares are unlisted, there is no market for them, transfer may be restricted, and you may be unable to sell or realise your investment for a long time, or at all.
- Dilution. Your shareholding may be reduced by future share issues. Valuation is subjective and not set by an independent market; returns and dividends are not guaranteed.
- EIS relief is not guaranteed. It depends on the company and on you meeting the qualifying conditions for at least three years and may be withdrawn or clawed back. Reliefs depend on your circumstances and may change.
- No safety net. This promotion has not been approved by an authorised person.
- Take your own independent financial and tax advice before deciding to invest.