How Raw AD will add value and create wealth for investors
The following diagram illustrates the benefits for you as an investor of investing in an Anaerobic Digester through Raw AD using an illustrative example of an investment of £7,000:
Investing £7,000 in Raw AD that will be invested in an Anaerobic Digester to be installed on a farmer’s land will generate a £2,100 tax rebate (30%) on your prior or current year tax payment if you are a UK taxpayer and have paid tax equivalent or greater than this amount of tax in terms of the Enterprise Investment Scheme (EIS) tax legislation.
This effectively means that your net investment in Raw AD will only be £4,900, which significantly improves your Return On Investment (ROI). The eventual cash flow from the investment when the plant is sold to the farmer some time in the 4th year, after you have made your initial investment, is expected to be £11,500. The calculation of your expected annual ROI with and without the tax rebate is shown below:
There is also an opportunity to invest the £2,100 EIS tax rebate you receive in another higher yielding, higher risk investment opportunity in oil exploration in Southern Africa with Alumni Oil, Raw AD’s sister company, through which you could earn a return on your investment of over 1,000% in 3 years. (visit the Alumni Oil website for more information).
As an ethical and environmentally conscious investor, you will also have the satisfaction of knowing that your investment will be helping to turn the problem of animal slurry and other bio-waste on farms in the UK – which contributes to global warming – into a profitable and eco-friendly solution for the farmer whose land we build the AD plant on, and the society as a whole. This investment opportunity is therefore completely in accordance with Raw AD’s core philosophy of ‘win-win or no deal’.