890543--9/28/2009--INTERNATIONAL_BARRIER_TECHNOLOGY

related topics

{stock, price, share}

{interest, director, officer}

{control, financial, internal}

{stock, price, operating}

{competitive, industry, competition}

{tax, income, asset}

{personnel, key, retain}

{product, candidate, development}

{condition, economic, financial}

Investors may be disadvantaged because the Company is incorporated in Canada, which has different laws. U.S. investors may not be able to enforce their civil liabilities against the Company or its directors, controlling persons and officers. Passive Foreign Investment Company ( PFIC ) designation could lead to an adverse tax situation for U.S. investors. Risks Relating to Financial Condition The Company has accumulated losses since inception which raise substantial doubt about its ability to continue as a going concern. The Company s history of operating losses is likely to lead to the need for additional, potentially unavailable, financings and related problems. The Company s need for additional financing to expand production and conduct marketing efforts could lead to the Company s inability to continue generating material sales revenue. The Company competes with other building materials companies that have similar operations, and many such competitor companies have operations and financial resources and industry experience far greater than those of the Company. Risks Relating to Management and Specific Operations The Company s Articles/By-Laws contain provisions indemnifying its officers and directors against all costs, charges and expenses incurred by them. Key management employees may fail to properly carry out their duties or may leave which could negatively impact corporate operations and/or stock pricing. Risks Relating to the Company s Common Stock Principal stockholders, officers and directors have substantial control regarding stock ownership; this concentration could lead to conflicts of interest and difficulties in the public investors effecting corporate changes, and could adversely affect the Company s stock prices. Employee/Director/Consultant stock options could lead to greater concentration of stock ownership among insiders and could lead to dilution of stock ownership which could lead to depressed stock prices. The Company has never declared or paid cash dividends on its common shares and does not anticipate doing so in the foreseeable future. Low stock market prices and volume volatility for the Company s common shares create a risk that investors might not be able to effect purchases/sales at prices that accurately reflect corporate value. Broker-Dealers may be discouraged from effecting transactions in the Company s common shares because they are subject to the penny stock rules.

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890543--9/28/2009--INTERNATIONAL_BARRIER_TECHNOLOGY_INC/