Sofant Technologies EIS – existing investors

This overview is based on the information available in the offer documents and information provided by EMV Capital (“EMV”) – an existing investor and an adviser to the Company, which is leading this round – which has not been verified by Wealth Club. Please read the Investor Presentation and Update carefully to form your own view and ensure you wholly understand the potential benefits and risks.

Sofant Technologies Limited (“Sofant” or the “Company”) is developing a patented satellite communication (SatCom) and 5G antenna. The Company is backed by several financial institutions, including EMV Capital, Newable Ventures, and Scottish Investment Bank.

In 2020 and 2021, Wealth Club investors invested a total of £911k under EIS at a price of £123.06 per ordinary share (pre-money valuation of £10.6 million). Since then, the Company has confirmed it has:

  • Secured a £6.2 million development contract with the European Space Agency (ESA), of which 50% would be grant-funded
  • Signed a Joint Development Arrangement with leading SatCom network operator SES, to incorporate Sofant’s technology in their Medium Earth Orbit network – with outcomes closely aligned to the ESA contract
  • Made significant progress in research and manufacturing development, to target volume production in H2 2023

Sofant plans to begin commercialising the technology towards the end of FY23 and aims to become profitable in FY25 – not guaranteed.

As part of its growth roadmap, as presented in the Company's Investor Updates in 2021 and 2022 – Sofant is looking to raise £2.5 million under EIS in a bridging round, ahead of a planned £9.5 million Series A round later this year, potentially at a higher valuation – timings and valuation are not guaranteed. EMV has informed us that £1 million has already been committed by existing non-EMV investors. 

The pre-money fully diluted equity valuation in this round is £21.1 million; the share price is £191.97. The round is expected to close on 29 June.

Sofant aims to use the funds to finalise the development of the demonstration platform, progress with commercial discussions with SatCom network operators, and expand business development activities in the US. 

Please download the latest Investor Presentation to read more on the Company’s recent technology developments, progress, plans and fundraising offer. Should you wish to invest, you can prefill your application online – there is no minimum investment for existing shareholders.

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.

Read important documents and then apply

Risks – important 

This is a single company offer with no diversification. It involves investing in an early-stage, loss-making business, which is by nature high risk and prone to failure. There is a risk that the capital raised may not be sufficient to achieve the Company’s objectives. You could lose the amount you invest.

Like all investments available through Wealth Club, it is only for experienced investors happy to make their own investment decisions without advice.

There is no ready market for unlisted EIS shares: they are illiquid and hard to sell and value. There will need to be an exit for you to receive a realised return on your investment. Exits are likely to take considerably longer than the three-year minimum EIS holding period; equally, an exit within three years could impact tax relief. The value of tax benefits depends on circumstances and tax rules can change. 

Before you invest, please carefully read the Investor Presentation which contains further details on the considerable risks – alongside the Wealth Club Risks and Commitments.

Structure and fees

Investors in the current offer will be investing in the Company directly, in EIS-qualifying Ordinary shares, and will pay no direct initial or ongoing charges.  

EMV, which has arranged this private offer, will pay an introducer fee to Wealth Club equal to 4% of capital raised. 

On exit, EMV is entitled to a performance fee predicated on investors achieving an exit greater than 1.1x. EMV will charge investors a 20% performance fee on investor profit over this hurdle. EMV will pay Wealth Club 15% of this fee, which equates to an overall 3% performance fee. There are no other fees paid to Wealth Club. This is set out in the Subscription Agreement: please read this carefully.

All the services Wealth Club and, where applicable, its subsidiaries provide are governed by the Terms and Conditions of the Wealth Club Services.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 

The details

Type
Single company
Sector
Technology
Target return
-
Funds raised / sought
£2.5 million sought
Minimum investment
-
Deadline
29 June
Last updated: 14 June 2022

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