Sourfire Limited seeks £500,000 equity fund
The loan is driven to fund the roll out of its artisan pizza format from its existing Winchester base to three additional sites in South London.
Pi is an Artisan Pizzeria offering high quality pizzas with innovative flavour combinations. The concept has been proven over the past three years at the first site in Winchester, Hampshire. It now plans to open additional restaurants in South London.
(Also read: Pi Pizzeria raises investment through Growthdeck)
The £500,000 is offered in two strips - £250,000 of EIS qualifying equity and a £250,000 secured loan paying interest at 8% per annum.
The equity and loan strips are each offered in units of £1,000 and £5,000 respectively. Investors can take one or more units of either the equity or the loan – or take a blended package of equity and loan units (i.e. effectively constructing your own mezzanine loan).
Each £1,000 unit of equity buys ‘A’ Ordinary Shares representing 0.12% of the initial equity, on a pre-money capitalisation of £583k. The ‘A’ Ordinary Shares are voting shares.
Investment in the new sites will fund fixtures and fittings, kitchen equipment, furniture etc. As the Company currently has a negligible level of bank borrowings, the terms for investors can be enhanced by raising £250,000 of the funding requirement in the form of secured term debt. This debt offers: asset-backed security, repayment over 4 years, commencing from December 2018.
The equity instrument is expected to be EIS-qualifying, giving an investor 30% initial income tax relief and potentially tax-free gains on an exit. It is available in units of £1,000.
