Professional Documents
Culture Documents
INDEX
Page
Executive summary
Introduction
2. Market opportunity
14
4.
25
Porter analysis
5. Fides labs replication and scalability inside the food industries and into other
industries.
27
6. Financial requirements.
29
31
8. Other considerations.
32
32
Executive summary
FIDES LABS provides cost-effective food safety testing services for agricultural and food
companies based on mass spectrometry (MSMS). As pesticides residues, antibiotic
residues, contaminant and restrictive substances that under new regulations as EC
1886/2006 agricultural and food exporter companies must to analyze through the whole
supply chain vertically and horizontally.
Chile being the 15th worldwide food exporter with over US$ 12.000 million food exports
annually will increase food exports to US$ 60.000 million for 2030. However Chile and the
Latin American region lack of a world class mass spectrometry food safety testing
laboratory (LC-MSMS, GC-MSMS), required to comply with international regulations in a
cost-efficient way and with the right technical support.
The demand from agricultural and food companies for food safety testing services based
on LC-MSMS/GC-MSMS is over MMUS$ 100 a year in Chile, > US$ 3 billion in Latin
America and over US$ 10 billion globally, increasing 25 % yearly.
The revenue model is through sample analyzed in an average price of US$ 200 per
sample and with special pricing for contracts.
FIDES LABS is a commercial MSMS food safety laboratory with competitive advantages
that has been gotten through an open innovation approach with experts around the world,
the innovative business model allow to offer to the clients answer times from 2-5 working
days (and not weeks), in 20 % less costs with better technical support services.
Fides labs requires an investment of US$ 4.2 million, it has a NPV (15 %)= MMUS$ 34,4;
ROI= 79% and a payback period of 3 years.
Fides labs has the feasibility to grow to a company with annual sales of US$ 10-30 millions
in Chile, US$ 20-200 million in a Latin-American level and 50-500 million worldwide, with
high margins, if is combined with an organic and acquisitions growth strategy.
We are seeking an anchor investor with a common and/or complementary vision and
capabilities to execute and expand Fides labs.
Introduction
BBG through its founder has developed relationships with leading agrifood companies,
with worldwide R&D centers in food and biotechnology, as well as it has implemented
LC-MSMS, GC-MSMS laboratories and expanded the business associated for the
biggest quality control and certification companies on the planet.
Combining technical, executive and strategic experience in biotechnology, LC-MSMS,
GC-MSMS and agri-food industries, with innovation management methodologies we
implement blinded technological business models for food safety testing services that
allow generating competitive advantages in the Latin American markets.
It is important to consider that these types of projects are based on detailed knowledge of
local customers, local-global markets, industry context, national and international
regulatory frameworks, open networking, cutting-edge technical knowledge, highperformance teams, business models and innovation management methodologies.
These intangibles are the added value to the project, and not just the equipments.
This project represents investments in technology infrastructure and the latest LCMSMS, GC-MSMS equipments, laboratory design and workspaces as the center
elements in the success of the project. However, the value is not in the equipments, but
in the technical and strategic knowledge, in the ability to generate high performance
teams, in the optimum configuration of the equipments for integration with a business
model that creates competitive advantages and its integration with an innovation
management system that generates sustainable growth. All this primarily focused on
close relationships with local food companies, and an understanding of their explicit and
implicit needs.
These intangibles available by BBG will be detailed below.
Our Vision
Become the largest food safety testing provider in Latam
Mission
Increase the competitiveness of agriculture and food companies
Director
Lesley Robles Sedan is the founder and director of Bio Business Group, chemical
engineer and civil engineer in biotechnology at the University of Chile, with
specialization in innovation management at the University Adolfo Ibez. 10 years
professional experience in business development and expansion based on mass
spectrometry (LC-MSMS, GC-MSMS) technologies combined with innovative
business models for Latin American and international markets. Before founded BBG,
Lesley Robles held several executive positions in Chile and in Australia, in entities
such as the State Agricultural Biotechnology Center at Murdoch University, Australia,
Corthorn Quality and SGS.
Lesley Robles has a global and multicultural vision because of his experience of life
in 40 countries and 4 continents.
2. Market opportunity
a.
Inspections
Verifications
Laboratory testing
Certification
These services are delivered to various industries such as mining, pharmaceutical, food,
environmental, petrochemical and automotive. Depending on the country, these four
companies are positioned differently in distinct industries, mainly providing traditional
services from inspections or laboratory testing. For example, the largest multinational
quality control and certification company worldwide is SGS, with a network of 625
laboratories in 140 countries, but SGS has only 4 Laboratories (Taiwan, France, Germany
and Belgium) operating correctly in the area of applied mass spectrometry for food safety
testing.
These is the reason because appear local specialized laboratories in the areas of mass
spectrometry (LC-MSMS, GC-MSMS) for food safety testing. Particularly in Australia,
country that has the same level of food exports that Chile, a local laboratory that began 15
years ago, Assure Quality, today has annual revenues over US$ 100 million.
In Chile and Latin America, the situation is rather particular, because large corporations do
not operate specialized businesses in the region, limited to traditional businesses such as
inspections, especially in the food industry. Also these companies have a rigid
organizational structure and philosophy that focuses on low-cost professionals, managers
who do not allow the flourishing of high performance teams. Technically, they do not have
professionals with expertise in the area of mass spectrometry and high technology
businesses. Their development strategy does not allow them setting more advanced
businesses, both in medium and long term.
Because an increase in demand for food safety mass spectrometry testing services,
services there
have been family owned businesses that have established laboratories, which serve
partially and unsatisfactorily the country's needs. Table I summarizes these companies.
companies
Table I Laboratories that provide some agricultural and food analysis in Chile
Several are family owned labs without major financial and management capabilities
Growing disappointment
ntment from clients
Testimonials
"We have not found a laboratory in Latin America that gives us the answer times, advice
and technical support that we need for our pesticide residues analysis"
Cecilia Duran, Chief Quality Control Anasac.
"We ask for a veterinary antibiotic residues study to Inspectorate, we explain them all the
associated protocols and they were not able to offer the service
Francisco Gonzalez, Chief of Quality and R & D Drag Pharma.
"We lost a shipment of several
U.S. $ million, because in Japan certain pesticides
exceeded the maximum residues limits, even though we had shipped because the
analysis in Control Andes Lab in Chile was satisfactory. Then we found that the
method of analysis used in Chile, did not meet the standards of the Japanese
Positive List Testing "
Chief Quality, Andes Foods
Fides labs is not just a business, it is a Latam agri-food industry infrastructure needs and
to protect consumers, the region requires urgently a world class LC-MSMS, GCMSMS Laboratory
Lesley Robles, Director BBG
b.
Market estimation
Strict new global regulations on quality and food safety as CE 1881/206, Japanese
Positive List Testing and CE 396/2005, the demand of international markets that require
certification in food processing safety standards such as GLOBALGAP, ISO22000:2007
and British Retail Consortium (BRC), and national regulations as the resolution 187 of
Ministry of Health, requires that all food
food-processing establishments implement HACCP1
under standard Nch 2861,, generating an increasing demand for mass spectrometry food
safety testing services.. In addition, the limited availability of these technologies and the low
level of knowledge in the management of these business models, make Chile and Latin
America, considering their growth rates in agri
agri-food exports, the best country
countr to expand
global business based on mass spectrometry oriented to agriculture and food industries.
Chile corresponds to one of the five Mediterranean regions worldwide and has exceptional
sanitary conditions for the food production. These factors, coupled with its economic
stability and its open economy, has made Chile grow dramatically, from food exports in the
80's from $50 million to be the 15th agrifood exporter in the world with over U.S. $ 12.000
million today. Projections indicate that Chile will be within the top 10 worldwide agri-food
exporters by 2017 achieving U.S. $20.000 million and US$ 60.000 million for 2030.
2
1
2
10
The agricultural and food Chilean industry growth in average rates > 10% and some
industries as poultry > 35 %, production for domestic use is U.S. $ 18.000 million per year
and agri-food imports U.S. $6.000 million, representing an annual agrifood trading above
US $36.000 million and growing. This provides a growing market for FIDES LABS. It is
also important to consider that 70% of Chileans agri-food exports go to highly regulated
markets like USA, Europe, Japan and Korea.
Market research
We developed a three years market research of analysis based on mass spectrometry as
pesticides, mycotoxins, antibiotic residues and banned substances required by the
agricultural and food companies. The study was conducted through personal meetings
with key companies, online surveys, analysis of regulatory frameworks, seminars,
workshops and other mechanisms.
Examples of demand for MSMS food safety testing services are listed below:
Pesticide residues
The 7 main fresh fruit exporters of the country as Rio Blanco and Subsole spend
on average US $ 600.000 a year in pesticide residues analysis each one. This
represents a demand > U.S. $ 4.2 billion in annual pesticide analysis required by
the 7 biggest Chilean fresh fruits exporters.
The country has 13,538 fresh fruit producers, who spend on average $ 1,000 a
year in pesticide residue analysis, which represents a demand > U.S. $13.5
million in pesticide residue analysis.
The country has 534 fresh fruit exporters. On average each spends U.S. $ 50,000
in pesticide residue analysis, which provides a demand > U.S. $ 26.7 million
annually.
11
CCU is a beer producer; it requires spending just in a single operation in its silos in
San Pedro, US$ 200.000 in mycotoxins analysis in rice imported from Uruguay.
Skretting, salmon feed supplier, spends U.S. $ 750.000 annually in the analysis of
melanin, crystal violet and leuco malachite green. Four other companies spend
similar values, which represents a demand > U.S. $3 million annually from these 4
companies actually.
SGS has two clients in the fishmeal industry and due to new regulations in China,
these clients require the analysis of nitrofurans, what is outsourced to other
laboratories, representing U.S.$ 200.000 annually.
12
The increasing demand for MSMS food safety testing is > 25 % annually.
13
3.
FIDES LABS is a unique business model of its kind, obtained through a process of open
innovation with worldwide experts in mass spectrometry (MSMS) applied to food safety.
The technological heart of FIDES LABS is based on an optimal configuration of the latest
models of LC MSMS and GC MSMS equipment for the area of food safety testing in
Latin-America. This optimal technological packing increase in 30 % sample processing
capabilities, reducing costs by 25%, providing an order of magnitude major sensitivity and
giving the option to provide specific services for niches markets. This configuration is part
of the technological packaging offered by BBG and generates competitive advantages.
(Technological packing not available in any laboratory in South America).
The element composing the Fides Labs business model is described below:
a. Optimal technological packing
i. Technical and economical analysis of LC-MSM optimized
Price
Equipment usability for applications in the context of local industries
Criteria and technical factors (eg, sensitivity)
Local support and experience of local support
Support for global networks
14
Technological obsolescence
Additional services such as facilities, guarantees and others.
Complete technical configuration of the equipment to operate optimally
service lines.
Integration of technologies and auxiliary features for:
i.
ii.
iii.
The study took two years through an open innovation approach, where information was
crossover analyzed with worldwide experts in LC-MSMS, applied to food and agricultural
analysis. The result was an optimal configuration for LC-MSMS equipment oriented to agrifood applications, thereby reducing implementations method from months to weeks,
operating costs reduced in 20%, production capabilities increased at 30%, sensitivity by an
order of magnitude higher, and allowing access to specific market niches. All these
features, integrated with methodologies to generate high performance teams, thus offering
faster & higher quality services at a lower price to the customers.
The main features incorporated in the optimized LC-MSMS model are shown in Table IV.
15
16
17
18
3.1.4.
BBG overturned its experience in the design and implementation of laboratories, towards
the design of an optimized food safety testing MSMS laboratory oriented to the local needs
of the agricultural and food sectors.
The study took two years of technical analysis, the methodology included meetings with
international experts, architects, specialized professionals, visits to international
laboratories, analysis of regulatory frameworks, work flows analyses, all orientated to
generate an impact in the technological packing, the business model and finally the
financial results. The result was optimal design and technical specifications for each one of
the areas required for the Fides Labs, including:
LC-MSMS room
GC-MSMS room
Samples preparation room
Samples reception room
Samples grinding room
Stowage and storage requirements
Wash room
Refrigeration and freezing requirements
R&D rooms
Baths, support and administrative areas
For every room is available a data sheet with the technical specifications as dimensions,
environmental conditions, electrical conditions, temperature, gas systems, furniture,
between other factors, and its spatial interrelationship to generate an optimal laboratory
design.
19
3.1.4.
A three years study to identify the optimal food safety methods was carried out. The
methodology included extensive literature review, exchange of information/methods with
global experts, costs analysis with suppliers, visits to laboratories, visits to clients. The
feasibility of method implementation was evaluated considering the following parameters:
The numbers of steps determine the general method evaluation. This criterion includes the
identification of number of reagents used, the number of purification systems, instruments
numbers, and glass material involved to obtain the purified extract.
o
The methods were prioritized by a limited use of incidental reagents (understanding itself
for incidental reagent, a reagent that is not related directly to the extraction and purification
of the sample, for example, derivatizing reagents).
20
Number of analytes belonging to the same chemical
hemical family, involved in
a unique analytical technique
technique.
We prioritized the selection of methods that involve the major number of analytes of the
same chemical family, for example, pigments antif
antifungals
ungals and bactericidal (Crystal
(
violet,
leuco violet, malachite green and Leuco m
malachite leuco green). The expected result is the
selection of a major number of methods that possess a wide spectrum of analytes of one
or more chemical families, instead of a high number of methods with a limited spectrum of
analytes.
3.2.
FIDES LABS considers a quality management system in accordance with ISO 9001:2008
and ISO 17025, as also management & financial control models, which give course to
generate an operational
ational excellence. This operational excellence willll be integrated with an
innovation management system to generate sustainable growth.
This is how FIDES LABS is the combination of a
an optimal technological packing focused in
the reality and needs of the target markets, integrated with soft management skills and an
innovation management
ent system for the continuous and sustainable growth.
Figure 1 Innovation management system for Fides Labs
21
3.3.
The heart of FIDES LABS is based on human resource management and the capability to
generate high performance teams, central element of our differentiation. The majority of
the national and international laboratories fail in talent management.
Fides Labs considers the latest soft management skills applied to business, as positive
psychology, integrity management and high performance teams management
methodologies.
FIDES LABS is based in the following values and principles, which all professionals and
workers must fulfill independently from their technical skills:
Client orientation
Respect
Leadership
Confidence
Aptitude to listen
Humility
Integrity
Teamwork
Orientation to results
resilience
Excellence
Optimism
22
3.4.
Commercial networks
BBG, through his founder, has 10 years generating local and global networks in the
agriculture & food industries. For four years in Chile, and previously in Australia, we have
devoted ourselves to realize market research studies for high technology business
oriented to the agricultural and food sectors, and due to our different experiences in quality
control and certification companies and weekly meeting with agricultural and food
companies, we have developed a commercial network. Some of them are:
Networks with the global quality control and certification companies operating in
Chile and Latam: SGS, Inspectorate, Eurofins, Bureau, Intertek, Alex Stewart and others.
A contact database with 15.000 key executives from agricultural and food
companies.
Personal networks with the main agricultural and food companies (agrosuper (US$
1700 millions in sale), Nestl, Agroprodex (US$ 50 millions in sale), CCU, Coca Cola,
Invertec (US$ 400 millions in sale), Multiexports, associations like Chilealimentos,
SalmonChile, Fedefruta, Chilenut, and others) and other dozens of companies.
BBG and its executives, support an average of three meetings a week, with key
members of agrifood companies of interest for Fides Labs.
We have important contacts with companies and associations, needing high
volumes of analysis based by mass spectrometry. Requirement of expenditure in LCMSMS, GC-MSMS analysis over US$ 0.5 million a year.
Marketing innovation
In general the laboratories possess technical profile, neglecting commercial and marketing
elements. FIDES LABS considers the combination of the best traditional marketing
practices combined with the latest digital marketing strategies and tools as:
We want to become a reference information center in food safety for the agricultural and
food industries.
3.5.
Great clients dissatisfaction exists regarding the technical and sales support received from
food safety testing laboratories in Chile and Latam, basically these laboratories do the
testing, but they do not have a technical support department or qualified people that can
give assistance or explain the testing meaning to the clients. FIDES LABS considers a
sales and technical support center that gives orientation to the clients about food safety
and testing results, so they can use the information for food safety management. This is
complemented with a training strategy through courses, seminars and workshops in food
safety.
The figure 2 describe the FIDES LABS business model.
Figure 2 FIDES LABS business model
INFRASTRUCTURE
CENTRAL
CAPABILITIES
Equipment depreciation
Leases
Permanent HR
Variables HR
Fixed and variable trade
costs
Variables analysis costs
Operational costs
NETWORKS
Business associations
I+D Centers
International Universities
Expert network
Reference Laboratories
Quality control and
certification companies.
MSMS suppliers
Agrifood associations
SETTING VALUE
Competitive methods
Build knowledge that adds
value to customers
Generate technical
expertise
COST STRUCTURE
OFFER
food safety
testing services, based on
mass spectrometry
with lower price
than competitors, faster
answer times,
fulfilling international
standards,
supplemented
with technical advice
and support.
FINANCES
CUSTOMER RELATIONS
Long term
Level strategic partner
Technical reference
Specialized and
personalized attention.
Social media, web 2.0
DISTRIBUTION CHANNELS
AND COMMUNICATIONS
Operations at national level
Technical e newsletter
email marketing
Member associations
Seminars workshops
Specialized magazines
Partnership with other labs
INCOME
CLIENTS
TARGET MARKETS
Sampling
Sample analysis
Technical consultancy
24
4.
Porter analysis
STRENGTHS:
Fides Labs is a world class center of excellence in MSMS food safety testing
services, not available at Latin American level. Its technological packing, commercial and
management approach allow to Fides Labs offering MSMS food safety testing services
under competitive advantages as:
o
25 % less costs
Few professionals exist worldwide that handle technically and commercially mass
spectrometry food safety testing laboratories. Having these professionals is one of the
principal FIDES LABS strengths.
Knowledge and networks with the local industries and business culture.
Knowledge in ISO 9001:2008 and ISO 17025, including regulatory frameworks and
accreditations mechanism.
International networks with the principal R& D centers, private laboratories and
global experts in MSMS.
The creativity, digital marketing knowledge and a culture centered in the clients
implicit and explicit needs is one of our strength.
OPPORTUNITY
Historically food safety has been a traditional area mainly based on microbiological and
traditional chemist analysis. Nevertheless, in the decade of ' 90 Europe, USA and Japan,
between other developed countries, initiated a strong R&D in food safety, which has given
origin in the last years to new and strict regulations, which the food exporting countries
must fulfill as residues of pesticides, mycotoxins, antibiotics residues, pollutants and
restrictive substances regulations. To comply with these international regulations, testing
based on technologies as mass spectrometry (LC-MSMS, GC-MSMS) are required, which
are technologies rarely available in Chile and Latam. No existing in the Latam region a
world class commercial MSMS food safety lab.
25
Chile is the 15th worldwide food exporter with > US$ 12.000 million annually, will achieve
US$ 60.000 million in food exports for 2030. By the other side regulations as CE
1881/2006, internal regulations requiring HACCP, GLOBALGAP, ISO 22000
implementation generate actual demands for MSMS testing in Chile > US$ 100 million,
increasing 25 % per year. In a Latin American level the demand is over 30 times the
Chilean market.
WEAKNESSES
Be a new player in the industry is one of the weaknesses of the FIDES LABS project,
nevertheless, in view of the advantages of operational efficiency, the technological and
management model, the commercial strategy, the marketing, the knowledge and the
networks already established with the potential clients, we will be able to accelerate the
market entry process.
For diminish these risks we are considering to execute an acquisitions strategy of local
laboratories, merges with international laboratories and/or formation of a consortium.
We also expect that the ANCHOR INVESTOR that we are seeking in this first round will
bring to the table not only financial capabilities, but also global networks that will help to
catalyze the company expansion.
COMPETITORS
A risk is that an international laboratory or multinational quality control company enters into
the Chilean and Latam markets. Nevertheless, this risk is mitigated by the following
context: the professionals who possess the technical knowledge in the area of masses
spectrometry in developed countries, in general are professionals from the scientific area
tied to R&D centers, public institutions and/or universities without the management skills to
set up a commercial MSMS food safety testing laboratory.
By the other side, exist a few privately owned MSMS food safety testing laboratories, that
generally operate in 1-10 countries, with sales between US$ 20-100 millions, considering
other countries and other regions of the world as a priority for business expansion, being
unlikely that they are going to enter into the Chilean and/or Latam market, because
distance, cultural knowledge and ignorance of local markets. Inclusive after get an anchor
investor, we will be targeting these laboratories to make a consortium if is required and
strategically convenient to generate a global network and catalyze the expansion process
in Latam.
Furthermore, the biggest quality control and certification companies as SGS, Bureau and
Intertek, they do not handle more than 3 MSMS's laboratories applied to the agrifood
sector in an efficient way, and principally they are located in developed countries of
Europe. For example SGS has good MSMS laboratories in Belgium, Taiwan and
Germany.
26
However in Latin America they are positioned in other more traditional business, as for
example basic inspection services, and in other industries such as mining or construction.
The local country managers do not visualize as priority to expand these businesses in the
region or high technology business. These companies do not have high qualified
professionals in the areas of biotechnology, MSMS or technology management to develop
these businesses locally. Considering the business development stage of these
companies in the Latam region and the corporative business development alignments,
they are not allowed to execute these sophisticated projects.
This is how the biggest quality control and certification companies are potential clients and
commercialization channels more than competitors in the Latam region.
27
Life sciences
Bioequivalence, PK/PD studies
Clinical assays, medicaments quality control
Toxicology , forensic service
28
6.
Financial requirements
INVESTMENTS
Assets
High technology equipments 2 LC-MSMS y 1 GC-MSMS optimally
configured.
Sample preparation equipments
Other minor investments, licenses, IT platforms.
Total Investments
US$ Thousands
1.500
200
200
1.900
HUMAN RESOURCES
390
43
130
65
729
Regional offices
Office south zone placed in Concepcin
84
84
84
336
29
Oficinas Regionales
Office for Colombia
84
84
252
Rental
Building rent and others
Start Up (8 months)
Reagents and Inputs for methods implementation
Accreditation expenses
50
RRHH
485
Buildings rent
Design, architecture, permissions, remodeling, construction, LAB
facilities
Start up regional offices first stage ( 4 months)
Budget initial Marketing
80
800**
112
100
1.747
30
10
2.000
6.000
12.000
13.800
15.870
18.251
20.988
24.136
27.757
31.920
200
600
1.200
1.380
1.587
1.825
2.099
2.414
2.776
3.192
100
200
230
265
304
350
402
463
532
612
R&D services
200
400
460
529
608
700
805
925
1.064
1.224
2.500
7.200
13.890
15.974
18.370
21.125
24.294
27.938
32.128
36.948
1.185
1.437
1.437
1.437
1.437
1.437
1.437
1.437
1.437
1.437
Variable costs
395
1.090
2.019
2.321
2.669
3.070
3.530
4.060
4.669
5.369
200
600
1.200
1.380
1.587
1.825
2.099
2.414
2.776
3.192
250
720
1.389
1.597
1.837
2.112
2.429
2.794
3.213
3.695
2.030
3.847
6.044
6.735
7.530
8.444
9.495
10.704
12.094
13.693
470
3.353
7.846
9.238
10.839
12.681
14.799
17.234
20.034
23.255
19
47
56
58
59
60
61
62
62
63
Depreciation
230
230
320
320
320
330
330
330
420
420
Start up amortization
175
175
175
175
175
175
175
175
175
175
405
405
495
495
495
505
505
505
595
595
2.434
4.251
6.539
7.230
8.025
8.949
10.000
11.209
12.689
14.287
66
2.949
7.351
8.744
10.345
12.176
14.294
16.729
19.440
22.660
41
53
55
56
58
59
60
61
61
11
501
1.250
1.486
1.759
2.070
2.430
2.844
3.305
3.852
54
2.447
6.101
7.257
8.586
10.106
11.864
13.885
16.135
18.808
405
405
495
495
495
505
505
505
595
595
1.900
Start up
1.747
500
Working capital
900
900
900
-4.147
459
2.852
-4.147
383
1.981
5.696
7.752
9.081
9.711
12.369
14.390
15.830
1.850
21.253
3.296
3.738
3.649
3.252
3.452
3.347
3.068
3.432
Results
Results
ROI 79%
ROI 79%
Sales at all times are considered under a market share below 15%. There are
agricultural and food companies that alone spend over US$ 700 thousand in these
analysis annually.
Variable costs are 15% of sales. Inspection and sampling sales were considered
equal to the costs.
31
8. Other considerations
FIDES LABS losses control: If the project does not become profitable after three
years, exists the possibility to liquidate all assets, especially high technology
equipments are convertible to cash. For these reasons, the maximum loss that can
produce the project is bounded to US$ 2 millions.
High technology invest Chile grant available: Being a high tech project with
positive externalities throughout the agricultural and food industries, the FIDES
LABS project can be co financed by a non refundable government grant up to
US$ 2 million.
The cash flows presented before do not consider co financing contribution
through government grants. If deemed, the project risk becomes positive, even in
the worst case scenario the losses control become less than US$ 0.5 million.
32
33