The Group is exposed to changes in the general economic situation
The Company and the Group may be affected by the general state of the economy and business conditions, including, but not limited to, the occurrence of recession and inflation, unstable or adverse credit markets, fluctuations in operating expenses.
No guarantee as to future performance
The different business areas of the Company and the Group are in an early to late development phase, and none of them are currently generating any substantial income. There can be no assurance that the Company will be able to achieve its targets and goals and thereby be able to achieve the returns on its investments, as described in this Information.
No guarantee of profitability
The Company and/or the Group companies’ ability to achieve profitability is to a large extent dependent on the successful implementation of the different project and the spin out of the project companies.
The Company is a company under change
MIRIS is currently under change from mainly operating at a loss making R&D investments to develop new technologies, financed by issuance of financial securities to moving into an operational phase with commercialization of products. It is dependent on the successful realisation of its key projects to generate sufficiently high cash flow to repay the Loan. The successful completion of the projects by the Company is not guaranteed, and may take longer than anticipated, or may not be completed at all. The company has various projects that are somewhat diversified, so the company is not dependent on all projects to be successful to be able to repay the Loan.
Fluctuations in the Company’s future operating results
The Company’s operating results may fluctuate significantly due to a variety of factors affecting revenues and expenses in any particular financial period. The financial results may fall below expectations.
The Company is exposed to interest rate fluctuations on its floating rate debt. Any period of unexpected or rapid increase in interest rates may hence negatively affect the Company’s cash flows and profitability. The interest rate level over time will also be an important factor in the development of the value of the properties and the return which investors can obtain.
Need for additional funding
MIRIS will need additional funding to complete its real estate projects. The ability to obtain such funding will depend on several factors, some outside the Company’s control. These include, but are not limited to, the general financial market conditions, stock exchange climate, interest level, the investors’ interest in the Group and the share price of the Company. There can be no assurance that the Svart project will be perceived as sufficiently attractive to secure the necessary project profitability and the additional funding necessary to complete the project.
The additional financing may not be available on terms favourable to the Company, or at all. If adequate funds are not available on acceptable terms, the Company may be unable to (without limitation):
- fund its expansion and growth;
- complete investments and/or developments and/or acquisitions, in particular the Svart-project;
- respond to competitive pressure; or
- take advantage of acquisition opportunities.
A lack of access to external capital or material changes in the terms and conditions relating to the same could have an adverse impact on the Company’s financing costs. The absence of additional suitable funding may result in the Company having to delay, reduce or abandon all or part of its intended business, including the Svart project.
Risks related to the financial profile of the Group
The Group’s degree of debt leverage could affect its ability to obtain additional financing for its working capital needs, capital expenditures, acquisitions and development and completion of the Svart project.