Swytch EIS – existing shareholders

Conversion kit company Swytch Technology Ltd ("Swytch") has created a lightweight, simple-to-install kit that can turn almost any bicycle into an eBike. This costs less than buying an average-priced new eBike and lets riders switch easily between pedal and electric modes.

The Company has now prepared its latest Shareholder Update. Since its previous update in May, the Company reports:

• Performance in the quarter ended 30 June was broadly in line with budget, with reported revenues of £3.5 million and EBITDA of £0.1 million.
• The business made a positive start to this quarter with July sales tracking ahead of budget.
• Management completed the rightsizing of the team, removing £2m of annual cost from the business.
• The team has reduced delivery times from c.6 months in 2022 to c.1 month as part of an investment in customer service and its brand, This has already yielded improvements in trading KPIs.

That said, due to the budget misses in Q1 and additional working capital required to shorten delivery cycles, the Company is now seeking a further £2 million investment from new and existing investors.

The Management is currently speaking to several new and existing investors about the round, with the option to invest in EIS-qualifying shares or a non EIS-qualifying convertible loan note (you can choose). Please see more details in the "Fundraising Status" section of the Shareholder Update (page 5). Please note: ownership of non-EIS qualifying shares could impact the EIS-qualifying status of an investment. If unsure, please take tax advice before deciding to invest.

Risks – important

This is a single company offer with no diversification. It involves investing in an early-stage 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 all 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. EIS tax relief is expected to be available only on part of the investment. 

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 Information Memorandum which contains further details on the considerable risks – alongside the Wealth Club Risks and Commitments.

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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.