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The Solitaire Diamon...

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This is a unique opportunity to participate in an EIS eligible investment vehicle with an exit in 3 to 5 years. The Business Model The company is offering 86% of share in return for £3.5m in minimum tranches of £50,000 as they become available via applications whist the offer is open. Solitaire Diamond’s business model is based on the following principal factors: The UK market in polished diamonds is characterised by a shortage of capital; Leveraging on this capital shortage, Solitaire Diamond will provide a wholesale brokerage service to the retail market and expects to achieve a consistently high margin on this activity; Demand for gem quality diamonds is positive with 6 per cent. growth expected through 2014 and beyond; The market both in terms of wholesale distribution and jewellery manufacture and retail is characterised by a significant degree of fragmentation. Investor Perspective The Board believes that the key strengths of Solitaire Diamond’s proposition to Investors are as follows: Asset backed – The Company is specialising in high quality, certificated, polished diamonds of 1-3 carats, "J" colour or higher and Si2 quality or higher, which are a stable, liquid asset with growth potential. Lean business model – The Company will be run on an annual cost base of approximately 5% of total investment with approximately 95% of funds raised invested in polished diamond inventory within 6 months of the Closing Date. Established distribution channels – The Company will be able to exploit existing businesses and contacts for distribution. Low volatility – Diamond prices have been on a steady upward path since De Beers established control of the polished diamond market in the 1930’s. However the market fundamentals have changed with demand growth now outstripping supply-fuelled by anticipated increased demand from increasing affluent populations in India and China and a recovering US market. Investment planning – The Company will endeavour to return value to shareholders between three and five years from the Closing Date. Tax concessions – The Company has received advanced assurance from HMRC to qualify for Enterprise Investment Scheme status offering significant tax benefits to Investors. Ease of exit­ – An Exit will be either by sale of the Company, or by a sale of its assets in the wholesale market at prevailing prices to provide funds for distribution to Investors. Diamonds are under normal market conditions realisable assets with a defined market value-and are easily liquidated for cash. You need to be registered as an investor to see this Join Now

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