Mitsubishi Electric UK Ltd has agreed to offer agreements and support to new company called Printing Colour Plc being established under the Business Expansion Scheme. Applications are invited to subscribe for up to 500,000 shares at UKP1 each, with a minimum investment of UKP1,000. The offer is underwritten up to UKP300,000, and as the offer straddles the end of 1989-90 tax year, applicants may elect for tax relief in 1989-90 or 1990-91. If the investment is to be made in the current tax year, applications must be submitted by April 5. Current legislation offers private investors that hold shares for a minimum of five years income tax relief and no capital gains tax on realisation. Printing Colour is being promoted by Meterquest Ltd, a scientific consultancy and development company established in 1986 to design and develop computer graphic software for colour screens and printers. It will market and distribute Meterquest’s interface product used by Mitsubishi in its Thermal Transfer printer. After sales support is to be provided by Mitsubishi, and engineers will join Printing Colour from Meterquest. For the first three months, Printing Colour is to pay Meterquest UKP25,000 per month for product development, and UKP20,000 for each of the next three quarters. Printing Colour is also to pay an initial licence fee of UKP50,000, and Meterquest has undertaken to subscribe this in payment for non-relief shares at UKP1 each. Meterquest will supply Printing Colour with existing and new products for one year, at the end of which, Printing Colour has the option to continue the relationship or develop its own product range. As Business Expansion Scheme company, Printing Colour is by definition risky, and the cost of the issue is high at 10% of the monies raised if the offer is fully subscribed – more if it fails to meet the target, but for those reckoning they know a little about the colour graphics business, the prospectus is worth a look – at least it’s a change from the endless stream of Assured Tenancy issues. Copies of the prospectus are available from Neill Clerk, 6 Park Circus, Glasgow G3.
