We face substantial competition and our inability to compete effectively could adversely affect our sales and results of operations.
We believe that our continued sales growth will depend upon, among other factors, our ability to expand our distribution base in existing markets and penetrate new markets in the United States, including markets that may be dominated by one or more regional or local craft breweries.
We believe that our continued sales growth will depend upon, among other factors, our ability to continue to increase awareness of the Mission Brewery brand though grassroots marketing and the opening of new tasting rooms, including by recruitment and training of qualified personnel in new markets.
We compete in the highly competitive craft beer market, as well as in the much broader beer market, which includes large-scale domestic and import brewers.
We believe that our continued sales growth will depend upon, among other factors, our ability to maintain and increase our production capacity.
We believe that our continued sales growth will depend upon, among other factors, our ability to secure and maintain supply of key raw ingredients, such as hops, barley, and packaging materials.
We believe that our continued sales growth will depend upon, among other factors, our ability to obtain all required governmental licenses in new markets on a timely basis.
If we are unable to expand in existing markets or penetrate new markets, our ability to increase our revenues and profitability may be materially harmed or we may face losses.
Factual statements have not been independently verified.
No party has been engaged to verify the accuracy or adequacy of any of the factual statements contained in this document or the investment agreements. In particular, neither legal counsel nor any other party has been engaged to verify any statements relating to the experience, skills, contacts or other attributes of the managers, officers and employees of the Company, or to the anticipated future performance of the Company.
Any projections of future performance provided to you may prove to be incorrect.
The financial projections of the Company and projections relating to the future market for the Company’s potential products are based upon current assumptions as to future events and conditions which the Company believes to be reasonable as of the date thereof, but which are inherently uncertain and unpredictable. The assumptions may prove to be incomplete or incorrect and unanticipated events and circumstances may occur. Because of such uncertainties, and the other risks outlined herein, the actual results of the Company’s future operations can be expected to be different from those projected, and such difference may be material and adverse. Potential investors should consider the projections in light of the underlying assumptions, reach their own conclusions as to the reasonableness of those assumptions and evaluate the projections on the basis of that analysis.
The Company is dependent on its management, founders and sponsors.
The Company is dependent on its management, founders and sponsors to execute its business plan. The success of the Company will depend on its ability to compete for and retain additional qualified key personnel to enhance the growth. The Company's business would be adversely affected if it were unable to recruit qualified personnel when necessary or if it were to lose the services of certain key personnel and it were unable to locate suitable replacements in a timely manner. Finding and hiring such replacements, if any, could be costly and might require the Company to grant significant equity awards or incentive compensation, which could have a material adverse effect on the Company’s financial results and on your investment. The loss, through untimely death, unwillingness to continue or otherwise, of any such persons could have a materially adverse effect on the Company and its business.
A disruption in brewing activities could have a material adverse effect on the Company.
A prolonged disruption to brewing activities (e.g., due to fire, industrial action or any other cause) at its brewing site could have a material adverse effect on the Company’s ability to brew its products. This could have a material adverse effect on the Company’s financial results and on your investment.
The Company has broad discretion in the application of the proceeds from the sale of common stock.
The management of the Company has broad discretion to adjust the application and allocation of the net proceeds of this offering in order to address changed circumstances and opportunities. As a result of the foregoing, the success of the Company will be substantially dependent upon the discretion and judgment of the management of the Company with respect to the application and allocation of the net proceeds hereof.
The Company currently carries a significant amount of debt and may incur additional debt.
The Company currently carries a significant amount of secured and/or convertible debt and may incur additional debt secured by the assets of its Company or convertible into equity securities of the Company. Complying with obligations under such indebtedness may have a material adverse effect on the Company and on your investment.
The common stock offered hereby may be diluted by future issuances of securities of the Company with superior rights.
It is anticipated that the Company will need additional rounds of financing for future anticipated expansion. Additional funding would likely adversely affect the current equity owners by diluting their equity interests in the Company. The Company cannot guarantee that the necessary funds will be made available to the Company. Thus, there is no assurance that the Company will be able to continue to develop and fully implement its marketing plan nor continue to operate if the necessary funding is not available.
The foregoing risk factors do not purport to be a complete enumeration or explanation of the risks involved in an investment in the Company. Prospective investors are urged to consult their own advisors before deciding to invest in the Company.