Partnership with GO-TO and Equity Raising Presentation
Key risks
Insurance coverage
BWX currently has in place what it believes are adequate levels of insurance for property, general and product liability, directors and officer's liability, and worker's compensation to protect BWX from potential losses and liabilities. There is a possibility that events may arise which are not adequately covered by
existing insurance policies. In this case the Company may suffer adverse effects to its financial results as well as to the value of its brands. The Company cannot guarantee that its existing insurance will be available or offered in the future. An inability of the Company to secure such cover in the future could
restrict the ability of the Company to conduct its business, and this could have a negative impact on the financial results of the Company.
Risk of litigation, claims and disputes
BWX is and may in the future be subject to litigation, claims and disputes in the course of its business, including competitor disputes, consumer disputes, supplier disputes, employment disputes, contractual disputes, disputes with governmental agencies or authorities or regulators, indemnity claims, and
occupational and personal claims. Any such matters could involve prosecution, defence, and settlement costs, and consume management time in the dealing with any such litigation, claims and disputes. In particular, and as previously announced, BWX is subject to a court proceeding initiated by Waterloo
Capital Partners LLC in 2018 in the US regarding success fees relating to BWX's acquisitions of the Mineral Fusions and Andalou Naturals businesses. This proceeding is still on going but not considered to be material by BWX. Any material litigation, claims or disputes could have a material and adverse impact on
BWX's financial position and performance.
Climate change
There has been an increased frequency of natural disasters globally in recent years and it is expected that this trend will continue in the medium to long term.
BWX is exposed to a number of potential climate change related risks which include:
increases in operating costs of assets due to carbon-pricing policies or other market mechanisms;
disruption to BWX's access or increase in price of raw materials used in BWX's products as result of climate changes and extreme weather events;
interruption to operations or supply chains from climate changes and extreme weather events; and
general economic downturn caused by or impacted by climate change causing consumers to reduce discretionary spending, including consumption of BWX's products.
The occurrence of any of these risks could result in asset impairment, lost revenue, downturn in overall sales and have an adverse impact on the financial position of BWX.
Price and availability of raw materials
BWX products are composed of certain key raw materials. If the price of these raw materials were to increase materially or raw materials were to become less available due to changes in the natural environment (including climate change) or supply chain issues, it could result in a significant increase to BWX's
production costs and adversely affect the business of BWX.
Unforeseen expenditure risk
BWX's future growth is dependent on having adequate capital available to fund its business strategy. BWX expects that the proceeds from this Capital Raising will provide sufficient capital resources to enable BWX to achieve its stated business strategy.
Should BWX require additional funding, there can be no assurance that additional funds will be available on acceptable terms or at all.
Information Technology and Protection and Security of Personal Information and Data
BWX is increasingly dependent on information technology, and if the Company is unable to protect against service interruptions, data corruption, cyber based attacks or network security breaches, BWX's operations could be disrupted.
BWX relies on information technology networks and systems, including the internet, to process, transmit and store electronic and financial information, to manage a variety of business processes and activities such as production management, inventory control, financial management and reporting database
management and to comply with regulatory, legal and tax requirements. BWX also depends on information technology infrastructure for digital marketing activities and for electronic communications among personnel, customers and suppliers around the world. These information technology systems, some of
which are managed by third parties, may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components, power outages, hardware failures, computer viruses, attacks by computer hackers, telecommunication failures, user
errors or other unforeseen events. If BWX's information technology systems suffer severe damage, disruption or shutdown and do not effectively resolve the issues in a timely manner, the Company's product sales, financial condition and results of operations may be materially and adversely affected and the
Company may experience delays in reporting financial results.
STRICTLY CONFIDENTIAL
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