Sandwich chain Oi Bagel aims to raise £1.3m to fund its expansion by offering shares under an enterprise investment scheme (EIS).
Oi Bagel currently has four branches in London and the company wants to open 10 more outlets in London and nationwide over the next two years. It offers made to order bagels with a wide range of fillings and other freshly made food and drinks including soups, desserts and juices.
With healthy eating a prime concern for many people, there could be a great demand for food and drink that is freshly made rather than pre-packaged.
This EIS may be suitable for adventurous investors who are looking for something a bit different and who would benefit from the tax incentives that come with holding shares in an EIS for at least three years. These benefits are 20 per cent income tax relief, capital gains tax deferral of up to 40 per cent or exemption from capital gains tax where shares are sold after three years and income tax relief is not drawn.
The minimum subscription is £1,000, which would not be beyond the means of many of Oi Bagel's customers who are keen to invest. However, unquoted companies are high risk investments. This EIS concentrates the risk by investing in one company, unlike venture capital trusts that diversify risk across a range of unquoted companies.