Company: Alphaco Technology Limited Sector: Manufacturing / Waste to Energy EIS Qualifying: Yes Raising: 5M

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1 Company: Alphaco Technology Limited Sector: Manufacturing / Waste to Energy EIS Qualifying: Yes Raising: 5M Alphaco Technology Limited ( ATL ) is the UK holding company, and 100% owner of, Alphaco Manufacturing Ltd ( AML ) an established and profitable Bulgarian specialist engineering company. AML provides specialised technology and manufacturing services and has created a niche market for the supply of high technology pyrolysis process equipment to operators in the waste to energy sector, enabling them to convert waste tyres into secondary oil fuel and carbon products. The market for such technology is increasing rapidly as macro trends and legislative changes create the requirement for increasing waste processing and use of recycled and recovered products. AML s primary client is EuroEco Fuels Poland S.P.Zo.O ( EEF ) which currently operates two AML supplied pyrolysis lines at its plant in Szczecin, Poland. EEF is in the process of building out the Polish plant to total capacity of eleven AML pyrolysis lines which are planned to be delivered and operating prior to end The EEF site and operation represents the most advanced industrialisation of this technology currently in use within the EU and EEF has a business model which will be central to EU policy around the legislated requirement for the use of advanced biofuels in 3% of all transport fuels by This underpins the opportunity for ATL to expand and is part of the rationale for this funding round. This investment summary describes an opportunity for new investors to participate in an EIS qualifying 5M equity round for ATL. Funds raised will primarily be used to support working capital requirements as AML transitions from a purely sales led operation to one that includes a rental model. By doing so the business will establish a long term predictable income. Current ATL shareholders include the founding family office and Interchem B.V., an established global oil broker. Background Alphaco Technology Limited ( ATL ) provides specialist manufacturing and technology services to manufacture and sell reactors which convert waste tyres into oil fuel and carbon black products via a process of pyrolysis. ATL is the 100% owner of Alphaco Manufacturing Ltd ( AML ). Following five years R&D by the founding family office AML commenced trading in 2014 when the first two pyrolysis reactors were ordered by EuroEco Fuels Poland S.P.Zo.O( EEF ). Following the successful commissioning of the initial two reactors EEF entered into long term off take agreements with LaFarge for the carbon black and Litasco for the oil product. The majority owners of ATL are also the majority owners of EEF. AML was originally established to service the needs of EEF which remains its current largest client. As a result of continued demand from EEF s existing customers a further three reactors are currently being built on site at EEF and due to commence operating in Q2 17. EEF forecasts ordering an additional seven reactors through 2017 in line with projected demand for its oil fuel and carbon products.

2 To date EEF has purchased outright all reactors ordered from AML and as a result these are held on its balance sheet. Following completion of this funding round AML will continue to sell rectors but will also commence a rental operation for its future clients, thereby developing a predictable and long term rental income stream alongside its headline product sales revenues. ATL believes that AML s capability and expertise is two to three years ahead of any possible competitor in the industrialisation of this technology. ATL is well positioned as a supplier of technology in the form of reactors that can generate advanced biofuels ahead of the 2020 requirements for all EU Governments to require utilisation of these fuels in 3% of all transport fuels under The Renewable Energy Directive. Current and forecast supply of advanced biofuels across the EU is substantially lower than the recognised demand for this product from 2020 onwards and ATL therefore believes that the company is well positioned to supply multiple clients adapting their business. ATL is currently the only company marketing and constructing these reactors in Europe. Timeline Historic timeline for the development and deployment of AML reactors Advanced Biofuel demand 3 reactors in build process 5 further reactors Pilot plant developed EEF orders 2 reactors Analysis of market opportunity Commercial scale plant Initial 2 reactors commissioned New clients, new product capability

3 Market Opportunity Macro trends are defining market needs; the EU Renewable Energy Directive sets out targets that require all EU Governments to increase the use of advanced biofuels to a minimum of 3% of all transport fuels by the year ATL through its subsidiary AML has developed and deployed reactor technology which allows advanced biofuels to be created from waste products using pyrolysis. AML s key reference client EEF currently has two reactors in operation and a further three are under construction as a result of demand currently outweighing supply of the end products. AML is exceptionally well positioned to become the pre-eminent EU supplier of specialist pyrolysis reactors as demand for advanced biofuels continues to grow year on year. AML pyrolysis reactors are currently optimised to work with waste rubber feedstock but could be developed to operate with a variety of input products according to client need. The market opportunity for ATL is being defined by continued major industry sector structural changes and supported by legislation. The key factors affecting ATL are: increasing annual quantities of waste tyre arisings as tyre manufacturers develop products and enhance marketing approach to create shorter tyre lifecycles, increasing awareness of tyres as a hazardous waste and with limited disposal options, increasing demand for recovered carbon black among sector manufacturers, legislative requirement for advanced biofuels. AML reactors are capable of producing advanced biofuels and given that volume of fuel that EEF will be able to produce from its site at Szczecin will be insufficient to supply the demand from even a single country in the EU this points to a huge market opportunity for AML to sell its reactors to multiple new clients. Together these trends combine to create a highly profitable environment for any business that can accept and process large volumes of waste and then turn this into products that are in steadily increasing demand. The pyrolysis reactors produced by ATL enable a client company to develop this business model. Business Model AML operates using a small team of 7 specialist engineers based in Sofia, Bulgaria. This team then manages the specification, sourcing, manufacture, delivery and assembly of each pyrolysis reactor using a variety of principally Bulgarian based manufacturing companies and parts from Germany, Italy and the Netherlands. ATL intends to develop a rental option for its equipment that will enable it to share in the long term profitability of its technology. This will build a consistent revenue and profit stream which will provide financial stability and an easier way of valuing a potential sale of the company post the EIS holding period. Management Team Allen Timpany (Chairman, Alphaco Technology Limited) Allen is an experienced UK based entrepreneur with a strong engineering background. businesses globally over the past 25 years, mainly in IT and business services. He has built several Ivaylo Petkov (Manager, Alphaco Manufacturing Ltd) Ivaylo graduated from the Technical University in Sofia, BG as Master of Science Mechanical Engineer, Thermal Power Engineering. He has more than 18 years experience in multinational Industry projects as a Supervisor and Project Manager

4 Financial Performance Alphaco Technology Limited is the holding company for its 100% owned subsidiary Alphaco Manufacturing Ltd ( AML ). AML is an established and profitable business with current trading underpinned by a strong existing client and future profits forecast through further development of its business model in a positive market environment. Commencing in 2017 AML intends to provide a rental service alongside its current sales process. Doing so will; (i) enable AML to access new clients whose businesses are more suited to equipment rental than purchase, and (ii) develop a predictable, ongoing and growing income stream for the company outside its current pure sales revenue model Funds raised by Alphaco Technology Ltd in the current fund raise will be provided by way of inter company loan to AML to fund working capital requirements during the initial transition to a part sales, part rental revenue model. AML Financial Forecast Actual F/cast F/cast F/cast F/cast F/cast F/cast Sales Income 2,557,440 4,800,008 5,691,300 13,199,990 17,599,986 17,599,986 22,956,504 Rental Income ,821 1,174,395 2,141,544 2,348,790 2,742,558 Direct Costs 2,019,137 4,200,474 4,782,605 11,478,252 15,304,336 15,304,336 19,130,420 Gross Profit 538, ,534 1,599,516 2,896,133 4,437,194 4,644,440 6,568,642 21% 12% 28% 22% 25% 26% 29% Operating Costs 174, , , , , , ,713 EBITDA 363, ,071 1,367,816 2,660,087 4,190,615 4,389,340 6,306,929 14% 10% 24% 20% 24% 25% 27% Interest paid Finance Costs 60,303 ( 3,743) Depreciation 6,347 47, , , , , ,217 Net Profit 296, ,741 1,208,396 2,389,073 3,696,412 3,703,833 5,541,712 Investment Summary 5M EIS investment - Ordinary Equity Alphaco Technology Limited now seeks investment of 5M to capitalise on the market opportunity being presented and to enable its operating subsidiary to transition to a part sales / part rental business model Shares are EIS eligible. Alphaco Technology Limited is currently valued at 8.9M thus a 5M investment would acquire a 36% shareholding

5 Investment Exit Investment in ordinary shares is an illiquid investment and investors should be aware that return on capital invested will likely only come through the issue of dividends and / or the sale of the company to a trade buyer or a listing on a public stock exchange. Should any of the above events occur then investors in ATL will receive a return on their investment with the profit calculated as the increase in value of the shares in the period. Investment Highlights Stable and profitable business with proven technology Forecast growth showing possible 3x valuation increase over 3 to 5 years Established and well funded primary client with identified near term order book Highly experienced management team Opportunity to develop technology and product offering Opportunity to develop extensive further new business in EU and the US Note - Investors are advised to discuss the detailed tax advantages of EIS investing, as it relates to their personal circumstances, with their own financial adviser. To receive a full copy of the information memorandum please contact either of: Charles Owen Cresco Capital Ltd Tel: Mob: c.owen@crescocapital.co.uk David Yates 4 Oceans Ltd Tel: Mob: davidy@4oceanscapital.com Authorised and regulated by the Financial Conduct Authority No IMPORTANT INFORMATION This document has been issued on the understanding that it falls within Article 19 (being a person having professional experience in matters relating to investments) or Article 48 (being a High Net Worth Individual) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, to which the provisions of Section 21 of the Act does not apply. If this assumption is incorrect then the recipient is instructed that the contents of this document must not be communicated to any third party. Cresco Capital Ltd has not reviewed or verified the contents of this document and make no representation or warranty (express or implied) as to its accuracy or completeness of the information or opinions contained herein and no liability is accepted for any such information or opinions. Should this document be communicated to any third party, this limitation must be made known to the third party and their acknowledgement received prior to any information being passed. This document has been circulated to elicit possible interest no investment decision should be made on the basis of this document.