The investment opportunity being offered to investors allows them to invest into Rencell by means of buying shares at R1 000 each.
These shares yield the investor a 5% dividend over the course of the investment period.
As the subsidiary companies continue to reinvest excess cashflows the share value increases meaning future investors will have to pay more than the original R1 000 per share.
Rencell intends to liquidate the subsidiaries after 5 years to offer investors a share buy back at the future fair value to realise the investor returns of 22% IRR.
Investors are offered numerous protections as Rencell is registered with the FSCA, SARS and CIPC. As a public unlisted company Rencell has to meet the governance requirements as set out in the Companies Act.
As Rencell is aiming to save middle class households money on their monthly power bills the decision was made to lower the minimum investment to a point where those same individuals could be part of the Rencell shareholders. The minimum investment in Rencell is R10 000.