Business Studies Course - Investment
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A press release - Reading

Here is a press release announcing the launch of a new company. The press release is in the form of a series of questions, followed by answers. You must match the questions on the right hand part of the screen with the answers on the left. The first question has been done for you.

Make your portfolio shine with Xsolaris!.

0. .............. Xsolaris is a research company specialising in products using solar power. At present their major product is the Xsolaris Solar Generator. Xsolaris was formed as a start-up by a group of scientists from Cambridge University and la Universita di Padova. The money to start the company came from the Morgone VC unit, who have also provided management expertise.

1. ............. Xsolaris has a revolutionary product that can extract up to 54% more energy per square meter than any other type of solar cell on the market at present. Because of public opinion about greenhouse gasses, products from companies such as Xsolaris are certain to be taken up by more people.

2. .......... . Xsolaris is a research company. Their objective is toturn basic research into commercial products. The products are then patented and franchised to larger compoanies for production. If growth goes according to plan Xsolaris may manufacture its own products within a decade.

3. .............. The company is run by a professional manager, who answers directly to shareholders. Morgone will keep a non-executive director, and other directors will represent the company's major shareholders. Xsolaris has a very flat management structure, with very low administrative overheads.

4. ................ The physical assets of the company are two research facilities, one in East Anglia and another in Northern Italy. The principal asset of the company at this time is its patent on the Exegesis solar cell which is used in the revolutionary Xsolaris Solar Generator.

5. ............. It is expected that there will be a strong take-up of the company's products when they go on sale next April, and we expect the company to start trading in the black, thanks to many advance orders. Since the offering price will be low to be sure of a full subscription, it is expected to make an immediate profit for investors.

© MG VC publicity

 

A.      
What is Xsolaris?

B.      
What are the projected yields on investment?

C.      
Does the company have any assets?

D.      
What is the management structure?

E.      
Why should I invest in Xsolaris?

E.      
What is their business model?

ANSWERS