Bim Bam Belge 1A

Risk: The DANS LA BOITE team might not have (proper) knowledge of the market and/or make incorrect forecasts.

Consequence: If the team does not have sufficient knowledge of the market, it could set incorrect targets. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.

Risk: Given the stage of development that DANS LA BOITE is in, it is essential to have the right team for the future development of the company. If the company relies entirely on an indispensable person, there is a risk that this person will withdraw from the company.

Consequence: If there is only one manager or key person and that person withdraws, the company is (temporarily) without management. In case of difficulties, no one would be able to represent the company to make decisions.

Note for both risks: The company has two founders who are also directors. One is CEO and the other COO. The company is also supported by CAP INNOVE, ULB's incubator for innovative projects in Walloon Brabant.

Risk: Given the stage of development that project owner is in, it is likely that there will be a need for new financing.

Consequence: On the one hand, there is the risk that the company will not find investors, which would lead to the dissolution or bankruptcy of the company, causing the investor to lose part or all of his investment. On the other hand, there is the possibility that the company will find new investors, which will lead to dilution, which will be even greater if there is a lower valuation than the one currently used.

Note: Investors will have the opportunity to co-invest in new rounds, at the then current investment conditions.

Risk: The following risks associated with the company's specific activities may arise:

- Vending machines may break down.

- The website may be hacked or booby-trapped.

- Large retail groups may undergo changes in management or strategic visions.

- Retail sub-sectors, such as organic stores, may be affected by social or economic crises.

- Demand for local products may fluctuate.

- Logistics and quality problems can hamper the start-up's success.

- Strict regulations can lead to fines and closure.

- Local Belgian products may face fluctuations in supply and demand due to seasonal production.

- Start-ups relying on local suppliers face risks of late delivery and quality variations.

- The cost of ingredients and raw materials can also fluctuate.

- Start-ups need to adapt to changing consumer trends and demands to remain competitive.

Consequence: If these risks materialize, the company would have to bear additional maintenance costs and/or could feel an impact on sales and/or would have to review the DANS LA BOITE sales strategy and/or could feel an impact on profitability and margins. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of DANS LA BOITE, with partial or complete loss of the invested capital.

Note: The agile team is ready to revise the business plan, if necessary, should any of the above risks arise. In recent months, the company has focused on consolidating its logistics offering. By increasing the storage area, the warehouse will have the capacity to store up to 250 pallets for partners. In addition, to boost profitability, a duty-free zone will be created. This zone will enable producers to store their products in the warehouse without having to prepay excise duties. This solution will increase storage volumes and make the entire space more profitable.

Risk: The risk of insolvency means that the company does not have sufficient funds to meet its payment deadlines (cessation of payments).

Consequence: If the company does not find alternative financing (shocked credit), it may go bankrupt. The insolvency or bankruptcy of DANS LA BOITE may lead to lower or non-existent returns and in the worst case to a partial or total loss of the invested capital.

Risk: Neither the shares of DANS LA BOITE nor the Participatory Notes of the BIM BAM BELGE 1A compartment of Spreds Finance provide guarantees of a return or repayment of the invested capital.

Risk: Participatory Notes do not offer a fixed return. The return of the Participatory Notes depends solely on the performance of the Underlying Asset, namely the shares of DANS LA BOITE.

Consequence for both risks: If the project owner's predictions do not come true (within the predetermined timing), there is a risk of lower or non-existent returns and, in the worst case, partial or complete loss of the invested capital.

Note for both risks: Investors in Participatory Notes bear the same economic risk as if they were investing directly as shareholders of DANS LA BOITE.

Risk: Although each Spreds Finance compartment is ‘bankruptcy remote’ (meaning that no other creditor can claim a right on or against this compartment) in relation to the others and in relation to the ‘general’ liabilities of Spreds Finance itself, as a result of (i) the terms and conditions of the Notes, (ii) the articles of association of Spreds Finance and (iii) Article 4 of the Law of 18 December 2016 on crowdfunding; there is a subsidiary risk of insolvency of Spreds Finance.

Consequence: Should such insolvency occur, Noteholders may be exposed to the risk of a significant delay in the recovery of their investment.

Note: The probability of this risk occurring is extremely low given the structure and organization of Spreds Finance, in particular the compartmentalization mechanism and the "bankruptcy-remoteness" described above. Each participation taken or loan granted to a project owner is recorded in a separate compartment and is appropriately accounted for in the accounts, taking into account the fact that the accounts are kept by compartment. As a result of (i) the conditions attached to the issue of Participatory Notes, (ii) the articles of association of Spreds Finance and (iii) article 10 of the law regulating the recognition and delimitation of crowdfunding and containing various provisions relating to finance and notwithstanding articles 7 and 8 of the Mortgage Law of 16 December 1851, the assets of a particular compartment serve exclusively to guarantee the rights of investors with respect to this compartment.

Risk: Neither the project owner nor Spreds Finance organizes an exchange market for Participatory Notes. It is thus up to the investor himself to find a buyer for his Participating Notes. Given the absence of an exchange market for Participatory Notes, there is no way to adequately establish a comparative pricing methodology for Participatory Notes.

Consequence: A holder of Participatory Notes may not be able to find a buyer for the Participatory Notes it wishes to sell (at the price at which it wishes to sell).

Note: The intention is not to sell the Participatory Notes but to sell the Underlying Asset, often on the occasion of the sale of the Underlying Company itself (see Appendix B, (d)).

Risk: Any decision by Spreds Finance to sell shares of DANS LA BOITE is subject to the approval of the holders of Participatory Notes representing at least 75% of the outstanding Participatory Notes, unless Spreds Finance is required to sell them under a contractual or statutory provision.

Consequence: Investors thus bear the risk that the general meeting of the holders of Participatory Notes may refuse to approve the sale of the participation, in which case all investors are bound by this decision and thus must wait to obtain redemption of the Participatory Notes.

Risk: Investing in shares of young companies entails the risk that a buyer for the shares will not be found, or not at a fair price yielding a market return, or that a buyer will not be found within a reasonable period of time.

Consequence: If no buyer is found for the holding, redemption of the Participatory Notes is not possible.

Note: Spreds Finance will make every effort within its powers to obtain the best possible price.

Risk: Spreds Finance has not conducted an analysis of the proposed project or of the financial situation of the Underlying Company.

Consequence: Any investor considering subscribing to Participatory Notes should make its own analysis of DANS LA BOITE's solvency, activity, financial situation and prospects.

Note: Any decision to invest in Participatory Notes should be based on a comprehensive analysis of the project and of this sheet of essential investment information. Spreds Finance's model does not provide for the presentation of analyzed projects to investors but allows investors to invest based on the information made available to them, after making their own analyses.

To the best of the project owner's knowledge, there are no other material risks associated with its activities.