Stages of development of the SkyWay group of companies

Stages of development of the SkyWay group of companies after corporate restructuring

Dear friends!

Please note that due to restructuring of the company and the creation of a holding company, some changes appeared in the stages of development.

In general, the updated program of works (the document is in Russian) contains the same 15 stages of development. Some changes are made to it in accordance with the latest events in the company’s development:

1. Creation of a holding company, which unites all the four companies included in the SkyWay group of companies. Now instead of one continent – Eurasia ? SkyWay technology extends to the whole world, which brought about an increase in the number of shares in the holding company. This, in turn, demanded clarification of the number of marketable shares as well as the transfer of shares nominal value from pound sterling to US dollar. All these changes in the company operation demanded changes to the terms of shares transfer and the discount for various stages of the program performance.
2. The holding company now has one plot of land in Mariyna Gorka for the construction of SkyWay test complexes, and another one in the Free Economic Zone “Mogilev” – for the creation of our own production facilities to manufacture innovative SkyWay components. This required specifying the location of test plots, including their length, cost, work schedule, etc. In addition, obtaining the plots of land increases the need for financing of the project. The reason is that with their appearance, the holding company requires substantial investments to carry out planning and surveying as well as construction and assembling works. In addition, financing is required for the production of special equipment and tooling, including rail cars (unicars and unibuses, both urban and high-speed intercity ones), automated system of safety, control, power supply and communications, turnout switches, test-benches, and much more.
3. Additional funds are also required on contracts for the supply of construction materials, metal structures, components and separate elements of buildings and structures – passenger stations, freight terminals, loco depots. If we do not do this as a whole, no one in the world will buy our uncertified technology and our shares will cost nothing. Customers will buy the technology and place with us orders for targeted projects only in one case – if it is completed on a “turnkey” basis and certified. Only then, our shares will be worth of nominal value.
4. Currently we have a completed master plan of construction, which is undergoing the standard approval procedure at state agencies. Now we also pass the standard permissible procedure for planning, surveying and construction works (each procedure is done separately and requires certain time for negotiations and approval). Without all of these documents, that can be prepared and agreed upon only after the official (and not provisional) acquisition of the land, it is impossible to go out to the test site, otherwise the company can face serious problems, up to cancellation of the lease and withdrawal of land.
5. During the years of work of our planning and design enterprise in Minsk we have produced a range of new innovative solutions that significantly improve technical and economic performance of the SkyWay. They should be included in the work schedule, changing the needs for funding. It also demanded clarification of plans and stages of works. For example, thanks to our motor-wheel we shall reduce the high-speed test section by 15 km (instead of 30 km, sufficient will be 15 km to reach the speed of 500 km/h and then slow down). This also became possible thanks to an innovative braking system that has been designed by us within this year. It allows to reduce emergency braking distance at the speed of 500 km/h to 1 km instead of 10 km on a high-speed railroad at the same speed of the train. This has reduced our need for funding by nearly USD 100 million, but, in turn, necessitated the creation of our own industrial production, the construction of which was not previously planned under these 15 stages. Besides, additional funding is needed for the extension of designers staff to 175 people. However, this has great advantages for our investors, who for the same investment amount will become co-owners of not only a breakthrough transport and infrastructure technology, but also of new production facilities – plants and factories.
6. In order to develop further the SkyWay technology in 2016 we plan to increase the staff of designers at our planning and design enterprise in Minsk up to 175 people and, respectively, increase office space, which will also require additional financing.
7. Due to objective reasons, we go out to the test site later than the scheduled time and in a different country than originally planned (we described in detail earlier the unreliability of our potential partners in Lithuania and their refusal to fulfill contractual obligations).

All of the above is reflected in the revised stages of development of the holding company. Yet the essence of these stages, as well as the certification process and the introduction of the technology to the global markets, have not fundamentally changed. It is obvious, as obvious it used to be earlier, that performance of the planned work schedule would require increasing investments from stage to stage. To attract new investments the company regularly organizes conferences, promotion campaigns, webinars, narrates about its work on the official websites, the media and social networks. We are also actively working with our partners ? investment companies and funds.

Please note that the discount from the purchase of shares is the most attractive right now, at the stages of project performance. As can be seen from the program, after its completion, investing in the technology of the company will no longer be needed as, after the certification of the SkyWay transport technology, the holding company will be completely transferred to self-financing.