Alexandra Watson
Posted on 14 Aug 2018

Michelmores advises on UK marine technology company share offer

Michelmores has advised Totnes-based Fishtek Marine, a pioneer in marine conservation technology, who is seeking to raise £900,000 of equity through an investment crowdfunding campaign on the Triodos Crowdfunding platform. Incorporated in 2016, the company has developed a range of products aimed at the global commercial fishing industry. The products are designed to reduce damage to fishing gear for fishing fleets, whilst at the same time deterring the unintentional death or capture of other marine species, known as bycatch.

The new capital raised through the share offer will be used to invest in the sales and marketing of these existing products, such as a ‘pinger’ which uses acoustics to alert dolphins, porpoise and whales to the presence of fishing gear. It will also be used for the development and testing of four new products which will be launched over the next three years.

The company sells its existing products to fishing companies and distributors in 35 countries and expects to generate sales of £370,000 in its second year of operations – a 290% increase from the previous year. Due to new fishing legislation and growing awareness of marine conservation, the directors are aiming to grow the business to £10 million turnover within five years.

Triodos Bank is the first registered UK bank to have launched an investment crowdfunding platform offering a range of bonds and equities issued by organisations focusing on positive social and environmental impact.

The Michelmores team involved Alexandra Watson, Kieran van Bussel, Kurt Wicklund, Stephen Newson and Amy Tomlinson.

Alexandra Watson, Partner in the Corporate team, said: "It is fantastic to work with the team at Fishtek again, who are industry-leading experts.  It is also great to see the Triodos platform develop its offering. We originally advised on the establishment of the platform, and a number of the IFISA bond issues which have successfully raised money on the Platform. We are delighted to be involved in the first share issue to be launched on the Triodos crowdfunding platform, in particular supporting Fishtek Marine with exciting growth opportunities, and tackling an important environmental issue.”

Dan Hird, Head of Corporate Finance at Triodos Bank, said: “Fishtek Marine is a great example of an innovative business using technology and a commercial approach to tackle some of the most urgent marine conservation issues. We are very proud to be supporting Fishtek Marine and this share offer gives investors the opportunity to participate in an exciting early stage company managed by experienced businessmen.” 

Triodos Bank is the first registered UK bank to have launched an investment crowdfunding platform. Depending on their personal circumstances, investors may benefit from Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) tax reliefs (both subject to final approval from HMRC). EIS income tax relief is available at 30% of the cost of shares, and SEIS at 50% of the cost of the shares, both of which can be claimed against an investor’s income tax liability for the tax year in which the investment is made. The minimum investment for the share offer is £1,000 and a maximum investment of £100,000 applies.

Investments offered on the Triodos platform are not readily realisable, which means that they may be difficult to sell and you may not get back the full amount invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk and returns are not guaranteed. Repayment of capital and interest or payment of dividends will be dependent on the success of the organisation's business model and past performance isn’t a reliable indicator of future performance. You should always read the offer document in full before deciding whether or not to invest as it will cover risks specific to an individual investment. You can read more about the general risks associated with making these types of investments here. If you are unsure if any of these investments are right for you, you should contact an Independent Financial Adviser.