Investor Presentaiton
Key risks
Prospective investors should be aware that subscribing for Securities in the Company involves
a number of risks. The summary risk factors set out in this section, and other general risks
applicable to all investments in listed securities, may affect the value of the Shares in the
future. Accordingly, an investment in the Company should be considered highly speculative.
Sales and marketing
Orexplore's ability to convert the capabilities of its technologies into solutions and services
that customers will purchase remains a risk to its growth strategy. The success of
commercialisation will relate to the acceptance and adoption of Orexplore's offerings, driven
in part by perceived value-add relative to pricing, as well as overcoming adoption hurdles
including perceived disruption to the customer's established processes, resistance to change,
perceived threat of technology substitution by geologists leading to potential job losses, cost
and budgeting constraints and other barriers.
Take up of services will involve demonstration of the solutions against current practices;
demonstration of successful case studies; quantitative business case type support with
customers at varying levels within their organisations; well-presented value-creation and risk-
reduction propositions for any new functionality or processes unlocked by the technology;
and effective marketing programmes to raise market awareness of Orexplore. The rate of
adoption is expected to also be driven partially by the increasing rate of digitalisation within
the mining industry, which has traditionally been a late-adopter of new technology.
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Future Capital requirements
As at the date of this Entitlement Offer, Orexplore is currently loss making and is expected to generate
losses in future periods and may require further financing over and above the amounts previously
invested and any amounts raised pursuant to this Entitlement Offer (including where the Company
achieves its stated objectives).
Although the Directors consider that the Company will, on completion of the Entitlement Offer, have
sufficient working capital to carry out its stated objectives and to satisfy the anticipated current
working capital and other capital requirements previously set out, there can be no assurance that such
objectives can continue to be met in the future without securing further funding.
It is however noted that the Directors consider that, based on the intended use of funds set out in this
Entitlement Offer, the amounts raised, together with the Company's existing cash reserves as at the
date of this Entitlement Offer, will provide the Company sufficient funding for approximately 6 months
of operations.
The future capital requirements of the Company will depend on many factors, including the pace and
magnitude of the development of its business and sales, and the Company may need to raise
additional funds (debt or equity) from time to time to finance the ongoing development and
commercialisation of its technology and to meet its other longer-term objectives.
Should the Company require additional funding, no assurances can be made that sufficient financing,
if and when needed, will be available on terms appropriate or favourable to the Company, or at all. If
the Company is unable to obtain additional financing as needed, it may be required to reduce the
scope of its operations and this could have a material adverse effect on the Company's activities and
could affect the Company's ability to continue as a going concern.
The Company may undertake additional offerings of Securities in the future. Any additional equity
financing may be dilutive to Shareholders, may be undertaken at lower prices than the current market
price (or Offer Price) or may involve restrictive covenants which limit the Company's operations and
business strategy. The increase in the number of Shares issued and outstanding and the possibility of
sales of such Shares may have a depressive effect on the price of Shares. In addition, as a result of such
additional Shares, the voting power of the Company's existing Shareholders will be diluted.
Debt financing, if available, may involve restrictions on financing and operating activities.View entire presentation