NEWTREE IMPACT

1.      Risk associated with the early stage of the portfolio companies

Risk: The companies in which NEWTREE invests or may invest in the future generally operate at an early stage and therefore carry inherent risks. The net proceeds of the fundraising will be used primarily to invest in a pipeline of direct investments and to seize future opportunities, with an emphasis on young companies. These companies, whether existing or potential future portfolio companies, are often - but not always - in the pre-revenue phase and focus on developing new technologies and products that may not yet have been brought to market. This type of investment is therefore risky, as there is little proven track record, product development is still in progress and commercialization may not yet have taken place. Early-stage and pre-revenue companies can face a number of risks, for example:

Consequence: These risks, individually or in combination, can affect the ability of portfolio companies to achieve their objectives. Indeed, the realization of the risks described above may lead to a lower valuation of the involved company than at the time of investment, resulting in a lower-than-expected return or no return at all. In the worst case, there may even be liquidation and bankruptcy of the involved companies. Although this is NEWTREE's core business, it could have an impact on NEWTREE's investment results.

2.      Risk associated with minority participations

Risk: NEWTREE mainly holds minority stakes in its portfolio companies. 

Consequence: Despite diligent efforts to access all relevant information and regular updates, NEWTREE may not obtain all the information needed to fully execute its investment strategy. Furthermore, as a minority shareholder, NEWTREE may have limited influence over decisions taken within portfolio companies, which could impact their valuation and complicate exit strategies. In addition, it is conceivable that the principal shareholders of portfolio companies may have interests that diverge from those of NEWTREE. These factors may collectively influence the valuation of portfolio companies and/or the recurring revenues they generate.

3.      The risk associated with the need for new financing

Risk: Given the project owner's strong growth, it is likely that there will be a need for new financing. 

Consequence: On the one hand, there's a risk that the company won't find investors. 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 NEWTREE, with partial or complete loss of the invested capital. On the other hand, NEWTREE may find new investors, leading to significant dilution if a lower valuation than today's is used.

Since its inception, the majority of NEWTREE's resources have been devoted to portfolio investments and administrative operations, underlining the importance it places on growing and diversifying its portfolio. To date, NEWTREE has maintained a largely positive cash flow by prudently limiting its investment commitments in accordance with available funds. However, as NEWTREE continues to grow and expand the scope of its portfolio and the geography of its investments, it is expected to have an increasing need for significant capital in the near future. It is important that investors recognize the potential risks associated with NEWTREE's need for additional funding and the impact it may have on its ability to effectively execute its investment strategy. NEWTREE remains committed to actively managing these risks by always maintaining a cash position which allows to run the company's operations for an uninterrupted period of at least 12 months, while seeking opportunities to raise the capital necessary to continue its growth and success. It should be noted that investors will have the option of reinvesting in new public rounds, under the investment conditions in force at the time.

4.      The risk associated with the dematerialization of shares

Risk: It is NEWTREE's intention to dematerialize the shares as soon as possible. However, this does not depend solely on NEWTREE.

Consequence: Dematerialization may take (slightly) longer than expected, depending on Euroclear and/or the banks where the securities accounts have been opened. In addition, orders may not be entered correctly, requiring corrections.

Risk: NEWTREE is active in venture capital, which means that it invests in companies that are not listed on the stock exchange and are therefore not always very liquid. Indeed, NEWTREE's investment strategy generally involves long-term investment horizons. NEWTREE may therefore find it difficult to sell investments quickly at or close to fair value.

Consequence: The positive or negative revaluation of the net asset value (« NAV ») of investments made by NEWTREE is latent and will only be realized when an investment is sold. 

To mitigate this risk, NEWTREE uses cash flow planning to anticipate future cash requirements. When financial instruments need to be sold to meet these needs, NEWTREE implements a controlled process aimed at minimizing liquidity risk.

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

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

To date, NEWTREE has maintained a positive cash flow by prudently limiting its investment commitments according to available funds and by always maintaining a net cash position of over €750,000 over the course of its operations.

1.           The risk associated with the lack of guarantees

Risk: Investing in NEWTREE shares is a long-term investment. These shares do not offer a fixed return, nor do they provide any guarantee of return or repayment of the capital invested.

Consequence: If the project owner's forecasts do not materialize, there is a risk of lower or non-existent returns and, in the worst case, partial or total loss of the capital invested.  

Not relevant. The probability of failure of SPREDS or ECCO NOVA is extremely low. If - contrary to all expectations - one of the two platforms should find itself temporarily or permanently unable to provide its services, subscriptions made previously remain valid and new subscriptions can be made with the other platform. The chances of both platforms being incapacitated at the same time are virtually non-existent.

1.               The risk associated with NEWTREE’s share price

Risk: The issue price has been determined by NEWTREE and may not be related to the NAV, NEWTREE's net worth or any other established criteria or value.

Consequence: There is no guarantee that the common shares can achieve higher valuations or, if they do, that such higher valuations can be maintained.

2.           The risk associated with the low free float on Euronext Access

Risk: Investing in shares traded on Euronext Access may involve lower liquidity and is generally considered to involve a higher level of risk than investing in companies listed on the regulated market. It is important for potential investors to understand that the value of common shares can fluctuate, and that the market price may not accurately reflect NEWTREE's true value either upwards or downwards.

Consequence: On the one hand, investors must be prepared for the possibility of a decrease in the value of their investment and there is a risk of realizing less than their initial investment or even losing the entire investment. On the other hand, given the low free float, liquidity cannot be guaranteed at all times.

It should be noted, however, that the present capital increase will significantly increase the free float.

Risk: SPREDS has not conducted an analysis of the proposed project or of the financial situation of the Company. ECCO NOVA's analysis is summarized in its risk analysis, available on the campaign web page.

Consequence: Any investor considering subscribing to NEWTREE’s shares should make its own analysis of NEWTREE’s solvency, activity, financial situation and prospects.

Indeed, any decision to invest should be based on a comprehensive analysis of the project and of this key investment information sheet. Crowdfunding platforms aim to enable investors to invest, after having made their own analyses.