New company Corn Rising Shipping is looking to raise £5m to purchase a Multi Purpose Vessel ship under the Enterprise Investment Scheme (EIS).
The company has been set up by Charles Gamon, a ship owner and broker.
The raise is available exclusively through Wealth Club and allows for a minimum investment of £10,000. The offer is available until 5th March 2018 unless it reaches capacity sooner.
Wealth Club has indicated a potential return for investors of 2.1 x money invested over a period of three to five years. There are two potential sources or earnings; cash earnings generated through chartering the ship and potential asset appreciation of the ship.
Chief Executive of Corn Rising Charles Gamon said: “Having owned 14 ships in my lifetime and sold the last in 2011, I believe this is an excellent time to get back into ship owning. The market is at an inflection point. Demand is rising, but there is a limited supply of ships which should push chartering prices up. At the same time second hand ship prices are at ten year low, which should mean they have only one way to go – upwards.”
Founder of Wealth Club Alex Davies added: “We believe that this is one of the strongest EIS offers available today. The market timing seems right and investors could potentially gain from both rising chartering rates and appreciation in value of the ship itself.
“This investment also works very well with EIS. Not only are there very attractive tax breaks when you go in, there are also tax breaks if the investment doesn’t work out, greatly reducing the downside risk for investors. It is also very unusual for such an investment to be available to retail investors and at a relatively modest ticket size of £10,000. Normally these offers are only available to family offices and corporates.
“The scope for EIS investments is huge and by capitalising on these early-stage companies, investors can also take advantage of generous tax incentives, including 30% off your income tax bill. Also, if you make a profit when selling your EIS shares, any capital gain is tax-free, providing the investment remains qualifying. Added to this, EIS also allows you to defer capital gains, potentially indefinitely.”
