EDGE_G_4 12-59-34_Layout 1 - The Tax Shelter Report

24 Edge Performance VCT plc
(i)
(ii)
not more than 15% by value of the Company’s investments can be held in a single company or group (other than a
VCT); and
the Company is limited to investing up to £1 million per year per VCT qualifying holding.
The G Shares have been granted provisional approval by HMRC.
Prospects
The Directors are confident that the Company will continue to attract high quality investment opportunities from existing
co-promotion arrangements and from external sources. Accordingly, the Board is confident not only that the E Share and
F Share Funds will be fully invested in VCT qualifying opportunities well in advance of the three year period specified by
VCT legislation but also that there will continue to be attractive opportunities for the investment of the additional funds
raised as a result of the Offer.
Unaudited details of the Qualifying Investments made or committed by the C, D and E Share Funds to date are set out
below.
Qualifying Investments – C Share Fund
XV:8.2
MK Ultrasound Limited
The Company completed its initial investment of £1,000,000 in MK Ultrasound in April 2008, and a further investment
of £1,000,000 was made in February 2010. Both investments were funded from the C Share pool.
David Dorrell, a director and shareholder of MK Ultrasound, is a veteran of the music industry with successes stretching
over three decades, as a journalist, artist, producer and manager (including as manager of Bush and the Pet Shop Boys).
Since incorporation, MK Ultrasound has promoted or co-promoted a diverse range of events, including concert tours by
New Kids On The Block, Pussycat Dolls, Chris Cornell and Franz Ferdinand. In January 2010, the company co-promoted
the successful UK national tour of Total Nonstop Action (TNA) Wrestling.
Saravid Promotions Limited
The Company completed its initial investment from the C Share pool of £1,000,000 in Saravid Promotions in October
2008, with a second investment of £1,000,000, committed at that time and completed in May 2009.
Daniel Lycett, is the founding director and shareholder of Saravid Promotions. Joining the music industry in 1989 at 18,
Lycett has worked in a range of roles for some of the most notable companies in the industry’s independent sector,
including PWL Records, home to the ‘Hit Factory’ production trio Stock Aitken & Waterman, and German independent
label Edel Records, where he became the youngest managing director of a UK record label. Since 2004, Lycett has
operated on a freelance basis, working with, amongst others, 1960s superstar Donovan and US hip hop legends Wu
Tang Clan.
Following the loss sustained by Saravid Promotions on the run of “Monkey – Journey To The West” at the end of 2008,
the company has since successfully undertaken the co-promotion of tours by Beyonce and Alicia Keys.
Saravid Promotions has the benefit of an events licensing arrangement with AEG Live, under which live event promotion
opportunities will be offered to Saravid Promotions until June 2012. The company will, therefore, continue to have the
opportunity to recover its position following the initial loss on “Monkey – Journey To The West”. If the company is unable
to recover its position, it also has the benefit of a contractual guarantee from AEG as to the minimum return to be earned
by the company over that period.