While the facility is scheduled for opening in Q1 or Q2 2024, there may be delays in construction which may or may not be significant.

Modelling by the Indonesian Climate Agency (CAMCG) shows a risk of a tsunami in Bali in the next 100 years. This is a low probability in the near term, but the impact would obviously be severe.

Corporate tax concessions, international staff working permits and Japanese regulatory cover are all important SEZ conditions contributing to a viable project. Any reduction in these conditions due to reduced political backing weakens the investment case. This is deemed to be low risk prior to 2024 general elections, given President Joko Widodo’s public backing of the success of the SEZ.

The reliance on international clients requires a benign geopolitical environment. This includes, for example, international perceptions of local laws such as the recently introduced law against sex outside of marriage, applied to tourists as well as Indonesians. The risk of such things as future global pandemics and China’s role in the region is ever present and can be mitigated through maintaining a domestic client base to complement the international clients.

Is a risk with any innovative medical technology. Insurances will need to sought and all care taken. The risk is considered to be low given the Japanese history but the impact could be high.

The investment is exposed to a single asset (via an investment in the securities of Simplr).

No guarantee that the investment will be successful, and investors may lose all or some of their investment.

Potential for cost of building supplies and labour to fluctuate or for unfavourable market conditions to influence the success of the investment if there are no tourists to attend the regenerative facility.

Simplr or the proposed Indonesian SPV may not have sufficient insurance to cover certain risks.

Controls around investment into Indonesia or obtaining returns out of Indonesia may change.

The risk that the value of the Indonesian Rupiah changes, which could impact the value of the return on investment.

The banking and other financial systems of many emerging markets are not well developed or well regulated. Delays in transfers by banks may result as may liquidity crises and other problems arising as a result of the under-capitalisation of the banking sector as a whole. If a general banking crisis occurs in Indonesia, it is anticipated to likely have a material adverse effect on the investment.

The risks itemised above do not represent an exhaustive list. Other risks include the continued solvency of Simplr, forecast returns not being met, tax risks, force majeure and potential breaches of the JV and other agreements. There may be risks that at the time of writing this IM could not reasonably have been foreseen. Units to be issued carry no guarantee with respect to the payment of distributions, returns of capital or the market value of those securities.