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CEF completes further investment in CoreRFID Limited

The Coalfields Enterprise Fund, established to support SMEs in the former English coalfield regions, has completed a further investment in CoreRFID Limited

 

CEF provides further funding to Caspian Learning Limited

 

The Coalfields Enterprise Fund has completed a further investment in North East-based Caspian Learning Limited as part of a £1.5 million funding round

 

 

 

 

 

Eligibility

The Coalfields Enterprise Fund provides funding of up to £500,000 to companies that:-

• are classed as SMEs (small to medium sized enterprise)
• are unquoted (meaning they are not listed on any form of exchange, for example, the London Stock Exchange or Alternative Investment Market)
• Meet one or more of the following criteria with regard to their location:-
• have (or will have) their principal place of business within an eligible coalfield ward
• employ (or will employ) a significant proportion of their workforce from an eligible coalfield ward
• bring (or will bring) material economic benefit to an eligible coalfield ward
• do not operate in any of the excluded sectors
• is able to obtain 50% or more matched funding from other investors/funding providers from private sector sources (for example banks or a private investor)
• is able to produce a commercial return to the Fund on its investment

The Fund provides equity and equity related finance ranging from a minimum of £40,000 to a maximum of £500,000, typically structured as equity, with loan or preference share capital, or a combination of both.

Terms are typically structured as follows:-

- Ordinary shares

• Purchase of issued ordinary shares - typically a minority shareholding of 5-30% with annual dividend payable

- Preference shares

• Investment by way of redeemable preference shares instead of term loan
• Preference shares are redeemed periodically, usually every six months, with dividend payable on shares held in lieu of loan interest
• Normally involve capital redemption holiday

- Loan

• Term loans
• Interest rate similar levels to bank borrowing, with a pre-agreed lump-sum payment at the end of the term
• Unsecured borrowing
• Repayment typically quarterly over five years
• Capital holidays are available

- Or, a combination of the above

• The Fund Manager is able to put together financial packages to best meet your company's current and future funding requirements

Investment by the Fund may be up to 50% of the total funding requirement, with the balance being any other form of finance including all forms of equity and debt. The Fund has an ability to follow-on its initital investment up to £1 million in total, subject to the 50% matching rules.