Risk Warning

To help you understand the risks involved when investing in shares, please read the following risk summary. Please invest aware and diversify your investments.

The need for diversification when you invest

Diversification involves spreading your money across different types of investments with different risks to reduce your overall risk. However, it will not lessen all types of risk. Diversification is an essential part of investing. Investors should only invest a proportion of their available investment funds and should balance this with safer, more liquid investments.

Risks when investing in equity or funds

Investing in shares (also known as equity) does not involve a regular return on your investment, unlike mini-bonds which offer interest paid regularly.

Investing in a fund may help to diversify your investments and to spread the risk but general risks while investing in equity continue to apply.

Please bear in mind the following particular risks for equity and fund investments:

Loss of investment or tax relief

The majority of start-up businesses fail or do not scale as planned and therefore investing in these businesses may involve significant risk. It is likely that you may lose all, or part, of your investment. You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk and increase the chance of an overall return on your investment capital. If a business you invest in fails, the company will NOT pay you back your investment.

Tax relief may also be lost due to your personal circumstances or due to the activities of a company.

Lack of liquidity

Liquidity is the ease with which you can sell your shares after you have purchased them. Buying shares in businesses, such as RheEnergise, cannot be sold easily and they are unlikely to be listed on a secondary trading market, such as AIM, Plus or the London Stock Exchange. Even successful companies rarely list shares on such an exchange.

Rarity of dividends

Dividends are payments made by a business to its shareholders from the company’s profits. RheEnergise is a start-ups / early-stage company, and as such makes no commitments to pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares. Profits are typically re-invested into the business to fuel growth and build shareholder value. RheEnergise has no obligation to pay shareholder dividends.

Dilution

Any investment in shares in RheEnergise may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result, an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’-this has an effect on a number of things, including voting, dividends and value.

RheEnergise offer A-Ordinary Shares, including pre-emption rights that protect an investor from dilution. In this situation, the business must give shareholders with A-Ordinary Shares the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Please check the Articles to confirm these pre-emption rights.

Risk warning

Investing in start-ups and early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. This subscription agreement is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest once you have confirmed that you are sufficiently sophisticated.