Biomass Investment Ltd - Redress Won: Take Action Now

In the investment landscape, Biomass Investments, incorporated on 10th April 2014, and later dissolved on 30th May 2023, had been touted as a sustainable and potentially lucrative opportunity, until they weren’t….

Various Independent Financial Advisors (IFAs), such as the following, have presented Biomass Investments to clients:

Cherish Wealth

Craig Mitchell

Precise Advice Partnership

Premier Wealth Management

Tidal Wealth Management

While the same financial firms also offer other investments such as UK PDS, Contraxus Investment, Marbella Resort and Spa, Invest US Income, and Exit Strategy, it's important to delve into the emerging concerns about the mis-selling of Biomass Investments.

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What is Mis-Selling in Biomass Investments?

Mis-selling happens when an investment product is inaccurately or misleadingly presented, leading investors to make choices that might not be in their best interest. In the case of Biomass Investments, financial advisors may not have adequately disclosed risks or may have made over-optimistic projections, resulting in financial pitfalls for unsuspecting investors. If this sounds familiar, you might be eligible for a claim.

Delving Deeper: Biomass Investment Specifics

Understanding the nuances of the Biomass Investment bonds can shed more light on the concerns surrounding their promotion. The bonds were showcased with a promising annual interest rate of 12.5%. However, it's essential to be aware of certain conditions and objectives:

• First and foremost, these bonds weren't accessible to US-based individuals. For UK investors, the bonds had the condition of being non-transferable, meaning they couldn't be traded on any exchange.
  

• The company set criteria for bond eligibility. Bonds were available at £100 apiece, but there was a minimum investment limit set at £10,000, equivalent to purchasing 100 bonds. Subsequent investments could be made in increments of £100. It's worth noting that most UK pension schemes, along with other entities exempt from UK capital gains tax, were eligible to join the bond offering.
  

• When it comes to the utilisation of the funds raised from these bonds, the company had plans to channel them as loans to another entity, referred to as the Borrowing Company. Notably, these loans would be fortified with a security layer, encompassing a debenture and share charge over the Borrowing Company, and assets of Green World Power, the Italian subsidiary that possessed nine biomass plants with a notable gross balance sheet value. Another layer of security involved a debenture over AgroFarm International AG.
  

• An investor's commitment to these bonds was not short-lived. The bonds had a stipulated maturity of three years, but this could be extended up to five years based on company discretion. However, early redemption was also a possibility if the company directors deemed it necessary.
  

• The overarching goal of the company was clear-cut: to provide bondholders with a 12.5% annual return over the bond's life, which was ideally three years but could stretch to five. To sustain this payout, the company aimed for a 13.5% annual return from a loan facility, with funds raised from the bond issue. These loans, essentially designed to refinance an existing power production venture, would aid the Borrowing Company in reducing bank debt, settling dues to plant constructors, procuring vegetable oils as feed stocks, and bolstering their working capital.
  

Being privy to these specifics can provide a clearer picture of where the potential pitfalls and miscommunications might have arisen in the promotion of Biomass Investment bonds by IFAs.

Why is it Important to Open a Claim?

If you've been affected by investment mis-selling, it's crucial to take immediate action for several reasons:

• Financial Recovery: Claims can provide much-needed financial restitution, helping to offset losses.
• Justice: By opening a claim, you're holding IFAs accountable for improper conduct, potentially preventing others from falling into the same trap.
• Regulatory Awareness: Filing a claim can help flag misconduct, prompting regulatory bodies to take action against rogue IFAs.

Here at CP Financial Claims, we specialise in guiding clients through the complex process of filing mis-sold investment claims. Our team's extensive experience ensures you get expert representation, increasing your chances for a successful claim. Plus, our 'No Win, No Fee' policy means you pay nothing unless we win your claim.

Limited Information but Continuous Research

As of now, there's a scarcity of information available concerning Biomass Investment mis-selling. However, claims can now proceed. As and when we get more information regarding biomass investment, we will update this page

Other Investments to Keep an Eye On

If you have also invested in other products offered by these advisors, such as UK PDS, Contraxus Investment, Marbella Resort and Spa, Invest US Income, and Exit Strategy, you may wish to scrutinise these investments carefully. Mis-selling is not restricted to one kind of investment, and it's always best to keep an eye on all financial commitments you've made through these advisors.

Act Now

If you do suspect that you have been affected by any of the firms mentioned above, it is best to contact us via the form below for a free, no-obligation chat.

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