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Investment Opportunities

Currently within AG there are seven investment models being used at different levels within the Group:

a. Direct investment of financial or resources in kind into the holding and operating companies.

b. Core Technology IPR: each of the core technologies are “ring fenced” into separate companies and the opportunity for strategic partners and external investors are being offered the opportunity to acquire shares in the technology as well as obtaining exclusive rights to specific markets/ applications.

c. Application Based Investment: a specific application for a core technology could for example be in fishing line. We would be looking to raise finance to develop the application and then with a leading brand name / market leader create an AuTx-HT fishing line of higher performance than aramid, HMWPE and nylon fishing lines. We are currently working on AuTx-HT fishing line and it should be possible to capitalise a business with the AuTx-HT fishing line application rights by having a strategic partner as well as investors buying into the application company to develop the market with us. This model applies across a very wide range of applications and new IPR provides a high value asset to the application newco’s balance sheets.

d. Market Specific Investment: a leading distributor for example may wish to have the semi-exclusive rights to produce and sell protective products made from our four core materials. In return for these rights the strategic partner and/ or investors may be willing to consider funding the set-up of production of core materials, components and products made from them within the specific market.

e. Offset; Many defence related sales involve a countertrade or technology transfer called offsetting. The prime seller is contracted to provide a benefit to their government client in terms of a technology business that will enable their client to generate employment, training and export revenues. AG welcomes proposals for funding the setting up of production of its core materials, composites, components, and finished products and in return would project manage regional sales, marketing, training, engineering and assembly in the target country.

f. Government Capability/Obligation: Many countries have an obligation to provide training and employment for a % of their populations especially in deprived socio-economic groups and other citizens, an obligation for which they are often well behind. AG is having discussions to produce core materials and process the core materials into finished products under such schemes.

g. Many countries have investment schemes approved by their financial administrations that allow for tax liabilities to be deferred and invested in new business / employment/ wealth generation. Due to the unique nature of Alchemie Group’s core materials investment programs under such schemes are very attractive.