Key risks
Significant Risk Factors
An investment in the Tokens involves a high degree of risk. Some of the risks associated with an investment in the Tokens and the Company are more fully described under "Certain Risk Factors," in the Information Memorandum. These risks include the following:
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There can be no assurance that the Company's business plan will be successful or that investors in the Tokens will receive favourable returns or any return on their Tokens.
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As the Company does not have any other revenue generating operations (other than its agency services described herein), its ability to repay investors in full on the maturity date will depend on the Company being able to successfully implement its business plan.
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There can be no assurance that the minimum offering amount of £1,000,000 will be reached, in which case the Company will not proceed with the issuance and delivery of the Tokens.
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It is possible that either the construction of the production facility or the production of the magnesium oxide nanoparticles gets delayed or is unsuccessful. Prospective investors should therefore be aware of this potential delay or failure to be repaid and/or receiving a return on their investment in the Tokens.
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There is currently no existing trading market for the Tokens and, even following the approval of the Archax MTF on which the Company intends for the Tokens to be tradeable in the future, there can be no assurance that a secondary market will develop. If a secondary market does develop, there can be no assurance that it will provide the holders with liquidity for the Tokens.
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Tokens are not protected by the FSCS or any other government savings or deposit protection scheme.
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The tax characterisation of the Tokens is uncertain and potential investors must seek their own tax advice. The holding of the Tokens may result in adverse tax consequences to holders, including withholding taxes, income taxes and tax reporting requirements.
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The tax treatment of an investment in the Tokens depends on the relevant investor's own tax situation and on the tax laws and regulations applicable to such investor in connection with an investment in the Tokens, therefore each investor should take appropriate professional advice.
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PLEASE REFER TO SECTION 13 OF THE INFORMATION MEMORANDUM FOR THE MORE DETAILED
DESCRIPTION OF CERTAIN RISK FACTORS ASSOCIATED WITH AN INVESTMENT IN THE TOKENS.