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6. ECSC Shares
When applying for Shares, potential Members should regard their Shares as a long-term proposition for the life of the Project, which is
21 years. The Financial Projections and the calculation of return for Members are based on expert advice and experience derived from
other Energy4All projects. Financial Projections are by nature uncertain, illustrative only and must not be taken to be an indication of
any assurance about the ultimate return of capital or any level of return. The Financial Projections indicate that the return on Shares
will be 5% for the year ending 30 September 2017 and will increase in line with RPI each year thereafter. However if fewer Solar
Panels are installed or other sites are substituted for the Sites on the list, the returns could be lower. For ECSC Members who receive
EIS tax relief, a 5% return equates to more than 7% if it is assumed that the tax relief reduces the cost of the Shares.
Shares are expected to be held for a minimum of three years from commencement of trading in order to qualify for EIS tax relief.
ECSC Members do not have the right to withdraw Shares but the Board has the power, at its discretion, to permit Shares to be
withdrawn. There are no binding commitments in place to enable a realisation of Shares. However ECSC currently intends, if it has
sufficient funds, to institute a programme of redeeming Shares as cash permits. Shares will be redeemed in proportion to Members’
shareholdings and at the par value of £1. However any such redemptions will be wholly dependent on the performance of the business.
7. Financial Information
ECSC will only start to trade once the Solar Panels have been installed and have begun to generate electricity, thus no accounts have
been drawn-up to date.
8. Enterprise Investment Scheme & Tax Relief
ECSC has applied for advance assurance from HM Revenue & Customs that the Shares will qualify for EIS tax relief. If this is granted,
Members who hold their Shares for at least three years should receive 30% tax relief on their Shares and qualifying capital gains tax
payers may defer tax. There is scope to carry back the tax relief to the previous tax year to offset tax paid in that year. Certificates will
be issued once ECSC has been generating income for four months.
ECSC understands that its Shares are likely to be treated as exempt from inheritance tax under current rules. Members should seek
advice on this point for certainty on their personal position if it is important to them.
9. Investment in ECSC by Directors
The Directors of ECSC intend to invest £19,000 under the Share Offer on the same terms as other Members.
10. Project Development
The following preliminaries have been completed or are well advanced in respect of the Project:
Planning permissions have been obtained
A Licence Agreement with City of Edinburgh Council (‘CEC’) has been signed
Grid connections with SP Energy Networks have been obtained
The Preferred Sites have FIT Pre-accreditation
Preliminary surveys of the Preferred Sites have been undertaken
A tender has been issued for the installation works
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A Preferred Installer has been selected to complete surveys and to design and install the Solar Panels
A number of social investors have indicated interest in lending to ECSC, subject to due diligence.
The Board will be responsible to the Members for the management of the Project with Energy4All providing regular management reports.
11. Auditor
The statutory auditors of ECSC are Lamont Pridmore, experienced chartered Accountants based in Kendal.
12. Tender Process
A tender for the Project was issued in July 2015 and 15 companies responded. Changeworks, with Board Director David Hood,
reviewed the tenders and recommended a Preferred Installer, who will start installing the Solar Panels as subject to contract once
funds are raised.
13. Risks
All commercial activities carry risk. People Interested in becoming Members should take appropriate advice and make their own risk
assessment whilst also bearing in mind the financial, social and environmental aspects of purchasing Shares in ECSC. This is an
unregulated Share Offer, which means that Applicants will not have the protections of a regulated offer. Your attention is drawn to the
specific risks identified on page 8 which you should take into account before applying.
14. How to Apply and Timetable
An Application Form, with details of how to apply, is attached at the end of this Offer Document. The minimum number of Shares is
250 and the maximum is 100,000. Those interested in becoming Members should do so only after reading this Share Offer Document
in full and taking appropriate financial and other advice. The Share Offer will close on 1 December 2015 unless priority applications
have been received for the full amount, in which case the Offer will close before that date.
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