We will require ‘waste wood’ to operate our facility. The majority of this wood will come from Skamania County and the Gifford Pinchot National Forest. It is possible that advocacy groups might try to obstruct our access to such ‘waste wood’.
Reduction of timber harvest or thinning operations on public forests in our area would reduce supply of 'waste wood', raising prices for our raw material.
Prices of ‘fossil fuels’ could be reduced while the price of waste wood increases. Such fuels are our main price competition for energy production.
Fire in our log or wood-chip piles. Such fires have occurred in similar operations and are usually due to high moisture content in finely-divided woody material, such as sawdust.
Severe weather can hamper operations. Harsh winter conditions or high snow-load can damage facilities. (We had 4 - 6 feet of snow in 1979 and 2016.)
We are thinly capitalized and have limited operating capital. We will need to seek additional funding after this financing round to fully deploy our business plan.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
The company has limited number of employees and around $80k of long term debts as of December 31, 2016. One of these debts has a related party, Robert Sourek who holds 25% voting power in WRBU.
There is the risk of our land lease agreement not being extended. There is also no guarantee in getting more government grants that historically has helped with supporting our operations.
Bob Sourek is the Founder, President, and CEO of Bear Mountain Forest Products Inc.
Norm Ward was a professional surveyor for the US Forest Service until retirement. He currently manages his own small timberland and supervises our firewood operation.
Tom Linde was a forester, law-enforcement officer, and District Recreational Program manager for the US Forest Service until retirement. He is currently the Chairman of the Board for the Lower Columbia Fish Recovery Board.
There is also risk that we may have exposure to uninsured losses and be unable to recover such losses.