Gresham House Renewable Energy VCT 2 plc survey
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You will be aware that next year in the AGM in March 2021, Gresham House Renewable Energy VCT 2 plc will hold a continuation vote. Shareholders will, at that time, be asked to decide whether the company should continue for a further five years.
In the light of this, the Board of the company is keen to understand now what shareholders preferences are for the future of the company. This will enable the Board to plan ahead and to consider all the potential options to best meet shareholders requirements before making a recommendation to you ahead of the continuation vote. Please be assured that no final decision will be made until the results of the next year’s continuation vote are known.
We have included below a simple questionnaire which we would appreciate you taking the time to complete this form by [date].
By way of explanation, you should understand that in the case of option 2 below, any realisation of assets from the portfolio to meet shareholder demand for the cashing in of shares may result in the partial sale of the VCTs’ assets, or the winding up of the companies. Both of these options would take a considerable amount of time, possibly up to as long as two years. Furthermore, there can be no certainty as to the price that will be received for the assets and therefore the impact on the Net Asset Value of the shares, which may be positive or negative.
In the case of option 3, the new funds raised would attract tax relief for investors. However, whilst the VCTs’ objective would be to maintain similar dividend levels in the future and to enhance the NAV, as VCTs must now invest in higher risk, early stage company investments, there can be no guarantee that the dividend levels would be maintained and the capital deployed would be at risk.
(Then a full note on the time deadline for completion and the mechanics of the survey e.g. return in envelope provided, or fill in form on website with shareholder number?)
(We will give feedback on the results of the survey …need to decide timescale and how)