Zoppi & Co Advises on International Equity Financing for Growing Farming Tech Company

Background

Zoppi & Co recently advised a tech company in the farming industry on a successful international equity financing round. The client, a tech business specialising in farming technology, sought to raise capital to accelerate its growth.

Objective

The client's primary goals included raising capital, adopting a bespoke shareholders' agreement, complying with the Seed Enterprise Investment Scheme (SEIS) and EIS regulations, and maintaining control of the business despite bringing in new investors.

Transaction Structure

To meet the client’s needs, a six-figure sum was raised by issuing ordinary shares to a combination of angel and institutional investors. The deal involved the issuance of new and subdivided shares. Notably, drag-along and tag-along provisions were included in the articles of association, and a bespoke shareholder agreement was drafted.

Key Legal Expertise

The deal was led by Malcolm Zoppi, the corporate solicitor at Zoppi & Co. Zoppi ensured compliance with SEIS and EIS requirements, which offered tax incentives to investors, making the investment more attractive.

Comments from the Lawyer

“It was a great honour advising on this deal,” said Malcolm Zoppi. “I particularly enjoyed the complexities that came with dealing with numerous investors, as it allowed us to create a legal structure that balanced investor protection with the client’s desire to retain control over their business.”