Investor Presentaiton
INVESTOR PRESENTATION / OCTOBER 2023
RISK FACTORS RELATED TO VERDE
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Verde's business is subject to numerous risks, including but not limited to the following:
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Verde is an early-stage company with a history of losses, and its future profitability is uncertain.
To date, Verde has not generated any revenues from product sales.
Verde's operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of its control.
Verde's business is not diversified.
Verde may be unable to manage growth effectively.
Verde will need to secure additional funding and may be unable to raise additional capital on favorable terms, if at all.
Changes in tax laws may adversely affect Verde or its investors.
Construction of Verde's manufacturing facilities may not be completed in the expected timeframe or in a cost-effective manner. Any delays in the construction of Verde's manufacturing facilities could severely impact
its business, financial condition, results of operations and prospects.
Initially, Verde will rely on a single facility for all of its operations.
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Verde may be delayed in or unable to procure necessary capital equipment.
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Verde has not produced its products in commercial quantities.
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Verde expects to rely on a limited number of customers for a significant portion of its near-term revenue.
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Verde may be unable to obtain certifications required by its prospective customers.
Verde's products may not achieve market success. If Verde's products do not achieve market success, it may be unable to generate significant revenues, if at all.
Verde faces and will face substantial competition.
Verde produces biopolymer products from raw materials, including renewable resources, whose pricing and availability may be impacted by factors out of its control. Increases or fluctuations in the costs of Verde's raw
materials may affect its cost structure.
Verde's success will be influenced by the price of petroleum relative to the price of bio-based feedstocks.
The failure of Verde's raw material suppliers to perform their obligations under supply agreements, or Verde's inability to replace or renew these agreements when they expire, could increase Verde's cost for these
materials, interrupt production or otherwise adversely affect its results of operations.
Maintenance, expansion and refurbishment of Verde's facilities, the construction of new facilities and the development and implementation of new manufacturing processes involve significant risks.
Verde may not be successful in finding future strategic partners for continuing development of additional feedstock opportunities or tolling and downstream conversion of Verde's products.
Verde may rely heavily on future collaborative and supply chain partners.
Compliance with extension environmental, health and safety laws could require material expenditures, changes in Verde's operations or site remediation.
Verde's operating plan may require it to source feedstock and supplies internationally, and foreign currency exchange rate fluctuations and changes to international trade agreements, tariffs, import and excise duties,
taxes or other governmental rules and regulations could adversely affect Verde's business, financial condition, results of operations and prospects.
Verde's business could suffer form negative publicity and other adverse consequences with recent civil and criminal charges brought against Terren Peizer, Verde's former Executive Chairman; and Founder and
Chairman of Humanitario Capital, LLC. Verde's largest stockholder, by the Securities Exchange Commission and the United States Department of Justice.
From time to time, Verde may be involved in litigation, regulatory actions or government investigations and inquiries, which could have an adverse impact on Verde's profitability and consolidated financial position.
If Verde experiences a significant disruption in its information technology systems, including security breaches, or if it fails to implement new systems and software successfully, its business operations and financial
condition could be adversely affected.
Verde may not be able to protect adequately its intellectual property assets, which could adversely affect its competitive position and reduce the value of its products, and litigation to protect its intellectual property
could be costly.
Third parties may claim that Verde infringes on their proprietary rights and may prevent Verde from commercializing and selling its products.
Verde relies in part on trade secrets to protect its technology, and its failure to obtain or maintain trade secret protection could limit its ability to compete.
Verde's management has limited experience operating as a public company.
Verde depends on its teams, and Verde's business would suffer if it fails to retain its key personnel and attract additional highly skilled employees.
If the Proposed Transaction's benefits do not meet the expectations of investors or securities analysts or for other reasons the market price of TLGY's securities or, following the Proposed Transaction, the combined
company's securities, may decline.
If, following the Proposed Transaction, securities or industry analysts do not public research or reports about the combined company, or if they issue unfavorable or inaccurate research regarding its business, its share
price and trading volume could decline.
Following the Proposed Transaction, the combined company will incur increased costs as a result of operating as a public company, and its management will be required to devote substantial time to new compliance
initiatives and corporate governance practices.View entire presentation