Fishtek Marine
Fishtek Marine is a global leader in marine bycatch reduction and smart fishing technologies. The company has successfully developed a portfolio of patent protected products which are being sold to fishing companies and distributors in over 40 countries worldwide and has a number of new products in development.
The company was incorporated in 2016 to develop and commercialise technological solutions to marine bycatch and other sustainability issues across the fishing industry. The founders, Pete and Ben Kibel, set up the company following eight years of research and development in marine bycatch technologies with the primary objective of reducing the number of marine species which are killed in fishing nets.
Over 300,000 dolphins, porpoises and whales are killed or injured each year in fishing nets and lines making this the single largest cause of mortality for small cetaceans. Hundreds of thousands of turtles drown annually in longlines, making this the greatest threat to the survival of most populations. An estimated 100 million sharks are caught as bycatch each year and as a result over a third of the worlds species are currently threatened with extinction
The company generated income of around £1.1m in the year to 31 October 2022 and has been profit generating since 2021.
The share offer
Fishtek Marine is seeking to raise £1,000,000 through the issue of new shares in the company to support the commercialisation of recently developed products, SharkGuard and ScallopLight, and invest in sales and marketing to maximise the growth potential of existing products. It will also support the expansion of production facilities to support growth.
Enterprise Investment Scheme (EIS) tax relief
HMRC provided advance assurance that shares issued by Fishtek Marine should meet the qualifying conditions of the enterprise investment scheme (EIS).
EIS is a tax relief available to individual UK taxpayers who invest in qualifying early stage and growth companies established in the UK. The main benefits of EIS for investors are the ability to offset 30% respectively of the investment amount against income tax liability for the current year and an exemption from capital gains tax on the disposal of shares after the three-year qualifying period.
The tax treatment of the EIS scheme depends on your individual circumstances and may be subject to change in future.
Key terms
Environmental impact
Reducing the number of unintended deaths and injuries to marine species, in particular cetaceans, sharks, turtles and seabirds, caused by commercial fishing methods.
Term
This is an investment in the shares of an unlisted company and there is no guarantee over the availability or timing of an exit. Investors should therefore be prepared to hold the shares for the long term.
Repayment
There is no set repayment date. The directors of Fishtek Marine intend to procure an exit opportunity for investors after the three-year EIS qualifying period but there is no certainty that they will be successful.
Minimum investment
£100 (1 share)
Return
A return on investment is likely to be achieved through a sale of the company’s shares in the future. Fishtek Marine is not planning to pay dividends for at least three years and any dividends payable after this are dependent on Fishtek Marine’s financial performance.
Offer price per share
£100
Percentage of issued share capital represented by the share offer assuming full subscription
8%
Eis
Shares should be eligible for EIS, subject to formal approval by HMRC.
This represents the last opportunity to invest in the current tax year (6 April 2023 to 5 April 2024). Should the offer be extended again, any pledges made after the 8 March 2024 will result in shares being issued in the new tax year (6 April 2024 to 5 April 2025) and therefore, depending on your personal circumstances, count towards EIS eligibility in that new tax year.
Transferability
The shares are transferable, but they are not listed on any recognised investment exchange, which means that investors will be largely reliant on the directors of the company for procuring an exit. An investor who wishes to sell their shares in the meantime will have to find a willing buyer and agree a price with them, which in practice could be difficult.
Minimum raise
£200,000. If the minimum raise isn't reached, then investors’ monies will be returned.
Timetable
Offer closes on 30 April 2024, unless the £1,000,000 target has been reached earlier or the offer is extended. Shares are issued 14 days after close.
Risk warning
Investing in the shares of an unlisted company involves a high degree of risk, including potential for loss of capital and future dilution, and lack of liquidity, and should only be considered as part of a diversified investment portfolio.
