FORESIGHT 4 VCT PLC - Foresight Group

. Shareholders may be adversely affected by a change in the VCT status of the Company if a
number of the investments acquired from Target VCTs, or the investments of the Company, are or
become unable to meet VCT requirements.
. Completion of the Schemes will result in the Company having two classes of shares. Although
each share class will be managed separately, they will continue to be subject to the overall financial
position and performance of the Company as a number of accounting, company law and VCT tests
are applied at company level. One share class may, therefore, adversely affect the other share
class resulting in the other share class being restricted in the ability to make distributions and/or
VCT status being maintained. If, on liquidation, in the unlikely event there was a deficit in relation to
one share class, such deficit would be borne by the other share class of the Company.
. There is no guarantee that the Enlarged Company will meet its objectives. The value of Shares can
fluctuate and Shareholders may not get back the amount they invested and there is no guarantee
that dividends will be paid. The past performance of the Company, the Target VCTs and/or the
Foresight Group is no indication of future performance.
. Although it is anticipated that the New Shares to be issued pursuant to the Scheme will be admitted
to the premium segment of the Official List and will be traded on the London Stock Exchange’s
market for listed securities, the secondary market for VCT shares is generally illiquid and
Shareholders may find it difficult to realise their investment. An investment in the Company should,
therefore, be considered as a long-term investment
. The Company’s investments may be difficult, and take time, to realise. There may also be
constraints imposed on the realisation of investments in order to maintain the VCT tax status of the
Enlarged Company which may restrict the Enlarged Company’s ability to obtain maximum value
from its investments.
. Investment in AIM-traded, PLUS market-traded and unquoted companies, by its nature, involves a
higher degree of risk than investment in companies listed on the Official List which could result in
the value of such investment, and interest income and dividends therefrom reducing.
. Whilst it is the intention of the Board that the Company will continue to be managed so as to qualify
as a VCT, there can be no guarantee that such status will be maintained. Failure to continue to
meet the qualifying requirements could result in Shareholders losing the tax reliefs available for
VCT shares, resulting in adverse tax consequences.
. The tax rules, or their interpretation, in relation to an investment in the Company and/or the rates of
tax may change during the life of the Company and may apply retrospectively which may affect tax
reliefs obtained by Shareholders and the VCT status of the Company.
Taxation
It is the intention of the Board to continue to comply with the requirements of ITA 2007 following
implementation of the merger so as to continue to qualify as a VCT.
The effective exchange of Target VCT Shares for New Shares (as the case may be) should not
constitute a disposal of the existing Target VCT Shares for the purposes of UK taxation. Instead, the new
holding of New Shares should be treated as having been acquired at the same time and at the same cost
as the existing Target VCT Shares from which they are derived. Any capital gains tax deferral relief
obtained on subscription of the existing Target VCT Shares should not, therefore, be crystallised for
payment but will be transferred to the New Shares.
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