2. Financing Strategy Need for a strategy StrategicContextual Financial Financial Options for reality sustainability autonomy Financing Earned Investment Borrowings Investors Income
3. Contextual Reality• Perak Bio has no clear income base, or investment base• Perak Bio requires clear business focus or investment focus in the fields relating to biotechnology• Perak Bio requires capital to sustain its existence after 2012
4. Financial stability & Financial autonomy• To pay: – Salaries of two existing staff – Expenses – Board of directors• To provide capital for expansion of business and to create core business• To be financially autonomous from Perak State Development Corporation
5. Strategic Options for Financing
6. Earned Income• To have a set of sustainable businesses• May include Consultancy services e.g. consultancy on risk assessment and risk management, biosafety and biosecurity.• To be have a clear business idea on what to do with Perak Biotech Park. Issues need to be cleared: – Land ownership – Squatters – Design and marketing team
7. Earned Income (2)
8. Investment• Some business activities may be classified as investment or transferred as investment.• Investment only in businesses with good potentials.• May invest in the form of: – Ordinary shares – Loan stocks with fixed income – Preference shares with fixed income• May invest in securities such as listed shares, government securities etc in the future
9. Investors and Borrowings• As Perak Bio is state owned company, bank borrowing may not be an option as directors may not want to be personally responsible for the company’s borrowing.• Borrowing may come in the form of combined investment. This means that Perak Bio may invite private investors to invest in Perak Bio and part of the investment will be in the form of borrowings such as loan stocks.• To be able to do this, Perak Bio may have to implement part or all the business activities outlined in the Business Plan.