1109153--3/31/2010--BIOPACK_ENVIRONMENTAL_SOLUTIONS

related topics

{stock, price, share}

{customer, product, revenue}

{interest, director, officer}

{cost, regulation, environmental}

{operation, international, foreign}

{regulation, government, change}

{personnel, key, retain}

{stock, price, operating}

{competitive, industry, competition}

{financial, litigation, operation}

Our audited annual consolidated financial statements have been prepared assuming that we will continue as a going concern We operate in a competitive industry and our failure to compete effectively may adversely affect our ability to generate revenue We may suffer significant losses resulting from general product liability, which may harm our financial condition and result of operations. We rely on a number of different suppliers to supply us with the materials that we require to manufacture our disposable packaging products. We could be adversely affected by an increase in our suppliers prices or a significant decline in our suppliers financial condition. As a result, our business may fail and investors may lose their entire investment. We rely on certain strategic raw materials for our operations. If the raw materials we use to manufacture our disposable packaging products increase substantially in price or for whatever reason becomes unavailable to us our business could fail and investors could lose their entire investment. Substantially all of our assets, all of our directors and all of our executive officers reside outside the United States. As a result it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or executive officers. Our ability to hire and retain qualified personnel will be an important factor in the success of our business and a failure to hire and retain key personnel may result in our inability to manage and implement our business plan. Our international operations subject us to a number of risks, including unfavorable political, regulatory, labor and tax conditions in foreign countries. We may not be able to develop and implement policies and strategies that will be effective in each location where we do business and as a result our business could fail and investors could lose their entire investment. The limitation of our available manufacturing capacity due to significant disruption in our manufacturing operation could have a material adverse effect on sales revenue and results of operations and financial condition. Our disposable packaging products may be perceived poorly by environmental groups, customers and government regulators, which could have an adverse effect on our business, causing us to cease operations. We have a stable customer base; however, loss of, or material financial weakness of, our largest distributor could adversely affect our financial condition and results of operations until such business is replaced and no assurances can be made that we would be able to regain or replace any lost customers. This could cause us to go out of business and investors could lose their entire investment. Our business is subject to complex health, safety and environmental laws and industry regulations, which require and will continue to require significant expenditures to remain in compliance with such laws and regulations currently and in the future. Costs of such compliance will likely reduce our probability. Because our executive officers, directors control a high percentage of our common stock, such insiders may have the ability to influence matters affecting our shareholders. A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our ability to continue operations If we issue additional shares in the future, it will result in the dilution of our existing shareholders. Trading of our stock may be restricted by the Securities Exchange Commission s penny stock regulations, which may limit a stockholder s ability to buy and sell our stock. The Financial Industry Regulatory Authority, or FINRA, has adopted sales practice requirements which may also limit a stockholder s ability to buy and sell our stock. Our common stock is illiquid and the price of our common stock may be negatively impacted by factors which are unrelated to our operations.

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1109153--3/31/2010--BIOPACK_ENVIRONMENTAL_SOLUTIONS_INC.