Next Gen Solicitors

Risks Relating to the Company

NO RIGHT TO PARTICIPATE IN MANAGEMENT OR PROFITS BEYOND FIXED RETURN Bonds are a very different kind of investment to equity shares and Investors do not own a stake or have any right to participate in management of the Company. As such Bondholders will not be in a position to object to particular strategies or decisions of the Company’s directors. their behalf by a Trustee, the Trustee shall not be responsible, nor shall face any liability, for any loss incurred by the Bondholders relating to a failure of the Company to make payments (whether of interest or of the principal amount) to the Bondholders when due. The Trustee will not have any ability or responsibility to protect any monies in the accounts of the Company which may have been set aside for payment of interest or the principal amount in respect of the Bonds. The Trustee cannot guarantee return of any monies in the event of default. The Trustee has no role in the day to day management of the Company and its personnel are not experts in the Company’s business. Accordingly, in the event that the security is enforced, there can be no guarantee that it will be possible to realise the assets for the same value as stated in the IM (or realise them at all in some cases). CANCELLATION RIGHTS Investors will not be able to cancel an application to subscribe for Bonds once they have signed the application form. Investors should review the terms and conditions of application carefully and seek professional advice from financial intermediaries authorised under FSMA to advise on investments of this type. TRUSTEE Whilst the security in favour of Bondholders is held on

Regulatory Risk Changes to existing laws or regulations or the creation of new laws or regulations may have an adverse effect on the Company’s business and could result in the Company failing to generate sufficient returns to services the Bonds or redeem them in full (or at all). Specialist Analysis The Company will rely on the analysis, auditing and reporting from third party companies to identify the potential success of a case. There can be no assurance that such analysis, auditing or reports will be correct or that such information will be received in a timely manner. After the Event Insurance The Company will take out After the Event Insurance on behalf of each client for each case to cover the legal costs incurred in the pursuit or defence of litigation and arbitration Next Gen incurs on each individual case. The ATE policy provides cover in the event that the case is unsuccessful and covers any disbursements incurred in running the case such as specialist reports, issue fees and court fees as well as the premium itself. There is a risk that in the event of an unsuccessful case the insurer will not pay out the amounts owned to Investors. ATE insurance will not cover the client for the following: 1. Prior Costs Any Disbursements and Opponent’s Costs incurred before the commencement of the insurance Policy unless agreed by themwhen the Policy is issued. 2. Prior Agreement Any Disbursements incurred without Our or the Solicitor’s prior agreement. 3. Solicitor’s Own Costs The fees and charges of Your Solicitor under the terms of the Retainer Agreement. 4. Breach of Conditions Any Disbursements and Opponent’s Costs where any of the Conditions in this Policy have been breached by You. 5. Reasonable Cause of Action Any Claimwhich has been struck out or where the Claim discloses no grounds for bringing the proceedings, the proceedings are an abuse of the courts process, or Your conduct is likely to obstruct the just disposal of the proceedings.

Investments in this type of Company carry particular risks over and above the general risk of unquoted debt investment described above. Investors are reminded that there is no guarantee that the Company’s strategy or trading activities will be successful and that their investment is consequently at risk.

Offer Conditional on Minimum Fundraising

The Offer is subject to the minimum subscription of £300,000 being reached on or before the closing date. There is a risk that the minimum subscription will not be raised. If the minimum subscription has not been reached on or before the closing date, Investors’ monies will be returned without interest. Performance Risk The Company may not perform as well as expected and may even fail completely. Investors are reminded that any financial forecasts included in this document are hypothetical projections only. Projected results have many inherent limitations and there are frequently sharp differences between such projections and the actual results subsequently achieved. The Company cannot make any representation or warranty as to what the actual results will be and has provided its projections by way of illustration only. Personnel The Company’s performance is dependent on the continued services and performance of members of its board, management team, operational employees and professional advisers. If the Company does not succeed in retaining skilled personnel, fails to maintain the skills of its personnel or is unable to continue to attract and retain all personnel necessary for the development and operation of its business, it may not be able to grow its business as anticipated or meet its financial objectives including the servicing, and ultimately the redemption, of the Bond.

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