Nova Eye USA Sales Growth Opportunity
Key Risks - Specific
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As with any share investment, there are risks associated with an investment in the Company. The numerous risk factors are both of a specific and general nature. Some risks can be mitigated by the use of safeguards and
appropriate systems and controls, but some are outside the control of the Company and cannot be mitigated.
Section 1 identifies and highlights some of the specific risks that potential investors should consider prior to acquiring shares in the Company. However, the following is not, and does not purport to be, a comprehensive
statement of all relevant risks and is not listed in order of importance. Potential investors should seek their own financial or other professional advice in relation to the risks and must make their own assessment regarding
an investment in the Company.
1 Specific Risks
Business Strategy
Execution
Competition Risk
Nova Eye's success will depend on its ability to successfully execute its business strategy. Nova Eye's future growth, profitability and cash flows depend on the ability of the Company's
management to successfully execute its business strategy, which is dependent on a number of factors, including but not limited to its ability to:
- develop its portfolio through new product development and market execution;
- innovate and develop new products that are address consumer needs;
- build and maintain sufficient supply to maintain service demand;
- continue to expand its distribution channels to increase market presence, brand recognition and sales;
- successfully expand into targeted international markets;
- expand margins through sales growth and supply chain integration and efficiency initiatives; and
-
maintain disciplined capital management and working capital to improve the generation of cash flow.
There is no guarantee that Nova Eye can successfully achieve any or all of the above initiatives or anticipated time frames. The failure of Nova Eye to execute its business strategy could have a
material adverse effect on the Company's business, financial condition and results of operations.
The innovative medical devices market is highly competitive. If Nova Eye can not compete effectively and competitors begin to produce comparable products and patient outcomes the
Company's results could be negatively affected. Nova Eye competes on an international scale with companies around the world. Some competitors may have greater resources in comparison
with Nova Eye and thus have the ability to respond more effectively to shifting business and economic conditions. Competition in the innovative medical devices market is based on functionality
compared with existing treatments, pricing of products, quality of products and packaging, perceived value and quality of brands, innovation, promotional activities, advertising, editorials, and
other activities. The actions of Nova Eye's competitors can not be predicted across the aforementioned areas or whether new competitors will emerge in the medical devices market, including
competitors who offer comparable products at more attractive prices. In addition, further technological breakthroughs, new product offerings by competitors, and the strength and success of
competitors' marketing programs may impede Nova Eye's growth and the implementation of its business strategy. In addition Nova Eye is dependent on the following factors to compete in its
market:
- the continued strength of its products and brands;
- ongoing growth and innovation in Nova Eye's market segments;
- the success of Nova Eye's branding, execution and integration strategies;
- the successful management of new products;
- successfully entering new markets and increasing penetration in existing geographies; and
- its ability to protect the Company's intellectual property and utilise it to create value and support its business strategy.
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