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Future Fund: when does the loan convert and when is the loan repaid?

Future Fund: when does the loan convert and when is the loan repaid?

Many tech companies have already tapped into the UK government’s Future Fund, and last week the deadline for applying was pushed back to 30 November.  The Future Fund scheme works using a convertible loan note agreement, which houses the mechanics determining whether the loan is repaid or whether it converts into equity and then it also determines what happens to the redemption premium and the interest.

Here’s an HLaw flow chart visualising the moving parts (although this is no substititute for a close reading of the convertible loan agreement itself of course)…

All the thoughts and commentary that HLaw publishes on this website, including those set out above, are subject to the terms and conditions of use of this website.  None of the above constitutes legal advice.  Much of the above will no doubt fall out of date and conflict with future law and practice one day.  None of the above should be relied upon.  Always seek your own independent professional advice.

Humphreys Law

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