How do Winterman get access to these investments and how are they vetted?

Winterman maintains relationships in the UK and Europe directly with company owners and their advisors in order to maintain a steady deal flow of PIPE/Private Placement investments. Each company has extensive due diligence performed in a timely manner. During this due diligence Winterman will negotiate the level of investment the structure of the PIPE/Private Placement and the various nuances of the deal; Should all be in order an investment is made.

How does the Winterman Managed PIPE Account work for the investor?

Initially a client would invest a minimum of £20,000 a maximum of £1,000,000* into a managed account set up with a leading Swiss Bank. This account would be managed by Winterman Asset Management on a discretionary basis. When an investment is made the bank apply for the securities in one block. If the PIPE is a traditional equity PIPE then the shares will be allocated to individual accounts of investors pro rata to the amount that has been invested. No more than 10% of the account is invested in any one PIPE deal.

The investor will have a current account and a custody (broking) account. Any un-invested funds in the account can be withdrawn at any time and funds can be deposited in the account at any time.

What are the expected returns?

Individual PIPE deals can yield vey high returns over a period of time depending on how they are structured, however, the aim of the account is to be diversified amongst a number of PIPE's that have differing levels of risk and therefore differing levels of return.

What are the risks?

Investing in securities of listed companies has an inherent risk of loss. Small to medium sized companies are less secure than larger organisations and there is the possibility of a total loss of you investment. The Winterman Managed PIPE Account is only suitable for sophisticated investors who can suffer a total loss of their account.

If leverage is obtained for the accounts potential rewards are multiplied and so are potential losses.

How will you manage the risks?

Clearly Winterman Asset Management SA aims to diversify the portfolio of investments in your account in order to limit the risk and maximise the gains, but there are no guarantees that this can be achieved. Winterman will aim to use structured PIPE's wherever possible in order for there to be security over the investment made be it physical security or other.

No more than 10% of the account will be invested in any one PIPE unless suitable security is available. Winterman may also use derivative products to 'hedge' the PIPE investment made which may include CFD's, futures, options or other derivative instruments.

Where do you invest?

Although the term PIPE is a US acronym we concentrate on European transactions and, at this stage, are not looking at US PIPE transactions.

How do Winterman make their money?

We charge 2% per annum for managing the account and will earn corporate finance fees from the companies invested in which may be awarded in cash or warrants and options in the company's shares.

How long so I have to invest for and can I get at my money if needed?

The nature of the investment is medium to long term, meaning that you should aim to be investing your funds for a minimum of 2 years. You can, however, access un-invested funds in you account at any time. If the investments you hold have to be liquidated quickly you may get back less than you invested or you may be locked into a specific time period. (no more than one year from the date of subscription).

What is the tax status?

The account is an offshore account based in Switzerland; you should discuss with your advisors how you may best structure the account for tax purposes. We are currently discussing the possibility of have the account 'wrapped' with an insurance bond.

Am I eligible for an account?

To obtain an account you must be able to satisfy the status of a 'sophisticated investor' or 'accredited investor' as it is termed in other jurisdictions. This is simply because those who choose to invest in this manner should be of sufficient investment experience to be able to understand the risks involved of investing in this area. We are not, at this time, accepting applications from US clients.

How do I apply?

Follow the link here and complete the information. We will call to discuss your requirements and send out the necessary paperwork. Your account, subject to acceptance, will be open within 10 - 15 days. Alternatively, you can download an application form at the top of this page.

What information will I receive on my account?

You will receive quarterly asset statements and you may request a print out of the performance an assets in your account at any time.

*Individual strategies are available for those who wish to invest over £1,000,000

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