What are the risks of the Series 4 & 5 bonds?

ZooShare bonds are subject to a number of risks common to start-up ventures in general, as well as specific risks associated with electrical generation and anaerobic digestion.

The primary risk is Operating Risk – that as a result of mechanical breakdown or a lack of suitable feedstock, the plant could not make the biogas/power/revenues that ZooShare projected. That being said, all of the equipment is insured, and ZooShare has business interruption insurance. Regarding feedstock, ZooShare has secured contracts from multiple waste management companies to supply the material that’s needed. Given the plant’s favourable location close to where significant volumes of organic waste is produced, and being the only facility in the City of Toronto that can accept commercial organic waste, there is little risk that sufficient feedstock will be available during the life of the project.

For a complete list of risks, please see page 19 of our 2020 Offering Statement.

Bookmark the permalink.