Investor FAQs
Frequently Asked Questions
How is the share offering structured?
What interest will be paid on the loan stock?
Will dividends be paid on the ordinary shares?
What is the minimum investment?
Is there a maximum investment?
What happens if the offer is over-subscribed?
What is OFEX?
What are the benefits of being listed on OFEX?
Can the loan stock and ordinary shares be traded separately?
Do I need to have a broker?
Do DRO shares qualify for any UK tax reliefs?
Can I invest if I live outside of the UK?
Can I invest if I live in the Channel Islands or Northern Ireland?
Can I invest with other people?
Should I seek independent advice before making an investment?
These questions and answers are given for guidance only and you should only make an investment based on the information given in the prospectus.
Unless you feel sufficiently knowledgeable on making investments and assessing the risks involved, It is recommended that you should seek advice from an Independent Finance Advisor IFA.
If you have a question relating to investing in DRO which has not been answered here, please e-mail our corporate advisers Acorn Capital Finance Ltd and we will endeavour to respond as soon as possible. However, you should note that Acorn do not act for or advise individuals on investments. If you require investment advice you should contact an independent financial adviser.
We value your comments and would appreciate any feedback you have regarding this site and its content.
How is the share offering structured?
The initial funding will be raised by a public offering of equity (ordinary shares) and loan stock, with investors subscribing for £2 of loan stock for every £1 invested in ordinary shares.
What interest will be paid on the loan stock?
The loan stock will pay an interest of 10% gross and be repaid or converted in two stages, four and five years after issue. If the investors choose to convert their loan stock, they will receive shares at a 20% discount to the average share price for the three months prior to the conversion time.
Will dividends be paid on the ordinary shares?
It is the intention to pay dividends on the ordinary shares, so that the yield on the initial subscription price is 10%. This means that the investor should receive an initial return of 10% on the total amount invested as well as having the prospect of a capital gain.
What is the minimum investment?
For the initial public offering on OFEX, the minimum investment required is £2,400. That is 1,000 shares at 80p and £1,600 of loan stock
Is there a maximum investment?
The initial public offering on OFEX is limited to a total of £5,000,000.
What happens if the offer is oversubscribed?
If the offer is oversubscribed, the Directors may choose to issue further shares and loan stock up to a maximum amount raised of £7,500,000. If the amount subscribed is in excess of this then the Directors will take note of when applications are received in deciding whether to scale back or reject applications. Preference will be given to the earlier applications.
What is OFEX?
OFEX is a market operated by OFEX plc, a member of the London Stock Exchange, and regulated by the Financial Services Authority, which allows trading in the shares of unquoted companies.
Further information can be obtained from the OFEX website.
Further information on the FSA can be obtasined from the FSA website.
What are the benefits of being listed on OFEX?
- As shares listed on OFEX are regarded as ‘unquoted’ for tax purposes, investors in OFEX quoted companies may benefit from certain tax advantages which would not be available were the company listed on the full list of the London Stock Exchange
- Shareholders can see the market value of their shares and realise some of their investment through trading in a regulated marketplace. DRO shares and loan stock will be traded on the OFEX market giving investors an ability to sell their investment should the wish to do so.
Can the loan stock and ordinary shares be traded separately?
The loan stock and ordinary shares will be listed individually on OFEX and can therefore be traded separately.
Do I need to have a broker?
You do not need a broker to acquire the shares in an offer; you simply complete the application form and send it along with your cheque to the company's registrar. To acquire shares in the company once it has been listed on OFEX, you will need to go via a broker. Most high street banks provide a broking service.
Do DRO shares qualify for any UK tax reliefs?
As a trading company, DRO will qualify for the purposes of UK Business Asset Taper Relief. This means that a UK higher rate tax payer who holds shares in DRO for at least two years will only pay tax at 10% on any capital gain made on the shares. However there can be no assurance that DRO will or will continue to qualify if this way. You should take your own tax advice, as the availability of any relief will depend on your particular circumstances.
Further information can be obtained from the Inland Revenue website.
Can I invest if I live outside of the UK?
Normally you should be UK resident to apply for shares being issued. If you are not UK resident then you should contact us to see if your particular circumstances will allow you to invest.
Can I invest if I live in the Channel Islands or Northern Ireland?
Yes
Can I invest with other people?
You may apply jointly with up to 3 other persons per investment. Any applications made must be signed either by or on behalf of each joint applicant. If an application is made on behalf of another person, a power of attorney must be provided in order to satisfy money-laundering regulations.
Should I seek independent advice before making an investment?
Unless you feel sufficiently knowledgeable on making investments and assessing the risks involved, It is recommended that you should seek advice from an Independent Finance Advisor IFA.
Further information can be obtained from the IFA website.