All private securities listed through online investment platforms and Exempt Market Dealers (EMDs) like SVX are likely to carry more risk than those available on the public markets. Our goal is to make you aware of those risks before making an investment. For further details on the risks in the private markets, refer to the SVX Risks section. Some of the offering specific risks are identified below:
After successfully testing its prototype in Florida, Oneka is looking for its MVP to ultimately reach 100 connected buoys. Although it has proven that the technology works, the Company needs to industrialize its manufacturing process and perform cost reduction programs. Additional features will need to be developed, implemented and released.
This investment is illiquid given the stage of the venture. A liquidity event is unlikely to take place before the proposed exit as outlined by the Company. Investors should not expect to access their principal before an exit, which could happen on the fifth anniversary of this investment based on market conditions and capacity of the Company to buy-back investors.
Business and financial risk:
The planned business operations and revenues for the next phase of business at Oneka is dependent on customers adopting the product as well as for the Company to find the right commercial package formula related to the price, the features, the distribution and support required as well as the industrialization of its production to scale sales in large volume per customer.
Market – Adoption risk:
The Company will have to validation its commercialization strategy which will be confirmed through sales. This might require different approaches and could result into a higher investment cost to support sales and marketing efforts.
Oneka is an early-stage company with limited underlying assets to secure or de-risk this investment opportunity. All of the capital invested in the company via this offering is at risk for loss. The company has no history of revenue generation and track record to meet their debt financing obligations by making the requisite interest payments. This type of investment has substantial risk. Investors should make an investment only if they are prepared not to receive any return on their investment and to lose their investment in its entirety.
Oneka is a Canadian based venture with the majority of their customers planning to be coming from the US or the Caribbean’s. There is risk of the Canadian Dollar rising with respect to the USD creating a higher cost profile for the business.