Hi
I am an EIS investor in a struggling business. I am looking to loan the company some short term capital while they try to raise new equity using a secure convertible loan. I am not doing an ASA as cant be secured. My question is the impact this could have on my existing EIS investment
1. If the loan converts to equity I know it is not a qualifying investment. However is this some how "receiving value" and does this affect the status of existing EIS shares?
2. If the loan is repaid I assume this is "receiving value" so again does this affect existing EIS shares and/or does it affect my ability to invest in future under EIS?
3. If the company goes bust and I receive the security is this "receiving value" and again does it affect the status of existing EIS shares
I have emailed HMRC, but the reply may not come in time. Appreciate any advice as cannot find clear guidance anywhere
Mike
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