INFORMATION MEMORANDUM - SURF LAKES HOLDINGS LTD (Incorporated in the Commonwealth of Australia)
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COPYRIGHT 2021 SURF LAKES
SURF LAKES HOLDINGS LTD
(Incorporated in the Commonwealth of Australia)
PRIVATE & CONFIDENTIAL
INFORMATION MEMORANDUM
MAY 2021
PAGE 1
DISCLAIMER
COPYRIGHT 2021 SURF LAKES
This Information Memorandum has been prepared and (c) does not, by this Information Memorandum, provide any 2001 (Cth) (Corporations Act) or under any other law. This
issued by Surf Lakes Holdings Ltd (ACN 613 372 955), recommendation, service or advice. information memorandum is not a prospectus or product
a public company incorporated in the Commonwealth Representations upon which investors are entitled to disclosure document or other form of disclosure document
of Australia (“Surf Lakes” or the “Company”), for use by rely, if any, shall be limited to those set out in written under the Corporations Act and has not been lodged with
parties considering a possible investment in the Company. agreements governing the Offering. Investors should not the Australian Securities and Investments Commission. By
It does not constitute an invitation, offer or solicitation of rely on the contents of this Information Memorandum, retaining this Information Memorandum, you represent and
offers to invest in or buy any securities or assets of the but should satisfy themselves as to the accuracy of such warrant that you are not an investor to whom disclosure is
Company. contents by such independent investigation as they or required to be made under the Corporations Act or under
The Company is conducting a placement of newly issued their advisers think fit. any other law in any other applicable jurisdiction.
shares (the “Offering”). Offers to participate in the Offering Neither this Information Memorandum, nor any other All enquiries in connection with the information presented
will be extended by Surf Lakes. information supplied by the Company, nor does it purport in this Information Memorandum should be addressed to:
This Information Memorandum has been provided on a to be, investment advice. The Company is not acting as an
confidential basis solely for the information of selected investment adviser or providing advice to any investor. Reuben Buchanan
potential investors. Having provided the Information Statements as to future events and other forward looking Director - Surf Lakes Holdings Ltd
Memorandum, no obligation is undertaken to provide statements contained herein are provided to allow +61 422 186 686
the Interested Parties with access to any additional potential investors the opportunity to understand reuben@surf-lakes.com.au
information. management’s beliefs and opinions so that they may be Level 5 / 16 Queensland Ave
Any reproduction or distribution of this Information considered in evaluating an investment. Broadbeach QLD Australia 4218
Memorandum, in whole or in part, and any disclosure of its Such forward-looking statements necessarily involve
contents or use of any information herein for any purpose known and unknown risks and uncertainties, which
other than considering an investment in the Company, is may cause actual events to differ materially from any
prohibited. Each recipient, by accepting delivery of this projections or predictions expressed or implied by such
Information Memorandum, agrees to the foregoing. forward-looking statements. These statements are not
The materials relating to the Offering do not constitute, guarantees of future performance or events, and undue
and may not be used in connection with, an offer of reliance should not be placed on them.
securities for sale or solicitation of an offer to buy The delivery of this Information Memorandum shall not
securities in any place where such offers or solicitations create any implication that there has been no change in
are not permitted by law. the information contained herein since the date hereof, or
To the extent permitted by law, the Company, its that such information is correct as of any date subsequent
shareholders and each of its affiliates, representatives, to the date hereof. The Company undertakes no obligation
agents, directors, officers and employees: to update the information contained herein, except as
(a) does not warrant or represent the origin, validity, required by applicable securities laws.
accuracy, completeness or reliability of, or accept any All disclaimers and limitations of liability asserted on behalf
responsibility for, errors or omissions in this Information of the Company shall apply equally to their related bodies
Memorandum; corporate and their officers, associates, representatives
PRIVATE & CONFIDENTIAL
(b) disclaims and excludes all liability for all claims and advisers.
of whatever nature that may arise in any way from or The offer of any securities pursuant to this Information
in connection with the provision of this Information Memorandum is only available to investors to whom an
Memorandum and any inaccuracy or incompleteness, or offer can be made without the need for a disclosure
any reliance by any person on it; and document to be provided under the Corporations Act
PAGE 2
C0NTENTS
COPYRIGHT 2021 SURF LAKES
LEGAL INFORMATION 02
SECTION 1 - INTRODUCTION 04
1.1. THE OFFERING 05
1.2 THE COMPANY 07
1.3 RISK FACTORS 11
SECTION 2 – COMPANY OVERVIEW 13
2.1 SURF LAKES’ VISION AND PURPOSE 14
2.2 BACKGROUND, HISTORY AND KEY MILESTONES 14
2.3 THE PROBLEM WITH OCEAN SURFING 16
2.4 THE SURFING BOOM 17
2.5 THE SOLUTION TO PROVIDE SURFING TO EVERYONE 18
SECTION 3 - SURF LAKES’ TECHNOLOGY 19
3.1 HOW SURF LAKES WORKS 20
3.2 ABOUT THE TECHNOLOGY 21
3.3 ENERGY EFFICIENCY 27
3.4 CREATIVE DESIGNS 28
3.5 RELATED BUSINESS AND COMMUNITY IMPACTS 29
SECTION 4 -SALES, MARKETING AND CUSTOMERS 30
4.1 EXISTING SURF MARKET SIZE 31
4.2 THEME AND WATERPARK INDUSTRY OVERVIEW 32
4.3 ALTERNATIVE OPPORTUNITIES 33
SECTION 5 - COMPETITION OVERVIEW 35
SECTION 6 – OPERATIONS & SERVICE DELIVERY 40
6.1 LICENSING 41
6.2 PROJECT DEVELOPMENT - YEPPOON 43
6.3 PROTECTION OF INTELLECTUAL PROPERTY 45
6.4 RESULTS OF FULL-SCALE PROTOTYPE TESTING 46
SECTION 7 – BOARD & MANAGEMENT 52
7.1 BOARD OF DIRECTORS 53
7.2 EXECUTIVE MANAGEMENT TEAM 55
7.3 GLOBAL SALES TEAM 59
7.4 SURF LAKES AMBASSADORS 62
SECTION 8 - FINANCIAL INFORMATION 66
8.1 FINANCIAL STATEMENTS AND FORECASTS 67
8.2 CAPITALISATION OF THE COMPANY 69
PRIVATE & CONFIDENTIAL
8.3 PRE-IPO TO IPO/EXIT PATHWAY 70
Pro surfer Macy Callaghan during
one of the recent test sessions PAGE 3
01
COPYRIGHT 2021 SURF LAKES
INTRODUCTION
PRIVATE & CONFIDENTIAL
A windless evening in Yeppoon makes for idyllic glassy surfing
PAGE 4
INTRODUCTION
COPYRIGHT 2021 SURF LAKES
1.1 THE OFFERING
Surf Lakes Holdings Ltd (ACN 613 372 955), a public company incorporated in All enquiries in connection with the information presented in this
the Commonwealth of Australia and registered in the State of Queensland (“Surf Information Memorandum should be addressed to:
Lakes” or the “Company”), is conducting a placement of newly issued shares (the
“Offering”). The offer pursuant to this information memorandum is only available to
Reuben Buchanan
investors to whom an offer can be made without the need for a disclosure document
Director - Surf Lakes Holdings Ltd
to be provided under the Corporations Act 2001 (Cth) or, where investors are located
+61 422 186 686
outside of Australia, where it is lawful to make such an offer to those investors.
reuben@surf-lakes.com.au
Surf Lakes has approximately 347.6m outstanding shares held by approx 270
Level 5 / 16 Queensland Ave
individual shareholders. In addition, the Company has A$3,075,000 of Convertible
Broadbeach QLD Australia 4218
Notes outstanding, expiring on 30th June 2022, which are convertible into 12.3m
newly issued shares at a conversion rate of $0.25 per share.
The Offering is targeted to consist of 20,000,000 shares at an issue price of A$0.25/
share, for a total Offering size of A$5,000,000, subject to a minimum subscription
per investor of A$100,000. The Company reserves the right:
• To reduce the size of the Offering,
• To increase the size of the Offering, but not in excess of A$10,000,000,
• To change the minimum subscription amount for each investor, and
• To allot orders in the event of oversubscription.
The functional currency of the Company is Australian dollars. All references herein
to “dollars,” “A$” or “$” are to Australian dollars unless otherwise indicated. On April
28th 2021, an Australian dollar had a quoted value in United States dollars of US$0.77
(seventy-seven cents).
ADDITIONAL INFORMATION
The Company’s website is at www.surf-lakes.com.au. Upon signing of the
Confidentiality Agreement, the permitted recipient of this Information Memorandum
may login to
www.surf-lakes.com.au/private-placement to review and download:
• The Company’s constitution, which sets out certain rights and obligations of
shareholders
• The Company’s 2019 Annual Report to Shareholders
• The Company’s 2020 Annual Report to Shareholders
• Other information currently available to investors and shareholders
RISK FACTORS
PRIVATE & CONFIDENTIAL
THESE SECURITIES ARE SPECULATIVE. AND INVESTMENT IN THE SHARES INVOLVES A
DEGREE OF RISK. SEE “SECTION 1.3 – RISK FACTORS.”
PAGE 5
INTRODUCTION
COPYRIGHT 2021 SURF LAKES
USE OF FUNDS TABLE KEY INVESTMENT HIGHLIGHTS
Complete commercial design $1,500,000 A
PROVEN AT FULL SCALE: With decades of combined experience in engineering
Computational Fluid Dynamics (CFD) modelling $100,000 B
and construction management across mining, civil, commercial and amusement
1/5 Scale Model at Yeppoon for custom lake refinements $115,000 C park sectors, in August 2020 the Company achieved Surf Lakes technology at full
Prototype modifications, upgrades & demonstrations $500,000 D scale – not just in theory or in computer modelling. Surf Lakes is one of only five
companies globally to have built a focused surfing wave pool at full scale.
Registration and renewal of patents $55,000 E
LICENSEE INTEREST: Interest in licensing the Surf Lakes product is strong and
International Licensee Sales Business Development $100,000 F
has increased since development of a full scale model. Management is confident
Progress Surf Lakes Yeppoon Development Application $750,000 G that it can meet future sales milestones in calendar year 2021. Interest is global
in scope and projects are under consideration in North America, Europe, South
Yeppoon Commercial Design $500,000 H
America, the Middle East and Australia.
New Team Appointments $500,000 I
COMPETITIVE BUSINESS MODEL: Surf Lakes technology offers one of the highest
Marketing & Promotions $300,000 J wave production levels, the largest waves, the most breaks and guaranteed
offshore conditions, while catering for all levels of surfers. It is also competitive
General working capital and contingencies $580,000 K
in terms of build price, therefore potentially offering the highest return on capital
TOTAL $5,000,000 invested for the licensee or operator.
IP OWNER: Surf Lakes owns all rights to its technology. Investors become
Notes to Use of Funds Table: shareholders of this entity, therefore share in all profits, capital gains and success
A. Final commercial design of the CWD and systems ahead of the first commercial contract. going forward. We are not aware of any other opportunity for investors to buy into
B. CFD modelling for commercial refinements and ‘Standard’ model the global IP owner of a wave pool technology. For investors who want exposure
C. 1/5 Scale Model allows for more cost-efficient modelling for custom lake refinements to this rapidly growing sector, investing into Surf Lakes represents a unique
D. Prototype liner refinements & modifications, wave dissipation around Pressure Pot, further demonstrations at the Prototype site opportunity.
E. There are currently 2 patents registered and funds are required to continue this process in order to attain the maximum IP protection in
key countries such as Australia, USA and UK SURFING INNOVATION: Surf Lakes is an investment opportunity with the potential
F. Ongoing business development to change an entire industry. The Company believes that its technology will
G. Costs to engage consultants for attaining DA Approval to construct Surf Lakes-owned commercial surf park at Yeppoon. become the industry standard for inland surfing.
H. Costs to complete commercial design of Surf Lakes in Yeppoon
ENORMOUS UNTAPPED MARKET: There is an enormous untapped growth market
I. New global sales manager, engineering and project management team members
given that 99.5 per cent of world’s population is yet to experience surfing. This is
J. Marketing & promotional costs to generate new business from potential licensees, partners and investors
the market Surf Lakes aims to address.
K. General working capital costs and contingency
ADDITIONAL GROWTH OPPORTUNITIES: The Company is preparing to source
additional revenue streams by developing and owning (or investing in) Surf Lakes
wave parks. These revenues have not yet been included in any of the valuation
models to date.
PRIVATE & CONFIDENTIAL
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INTRODUCTION
COPYRIGHT 2021 SURF LAKES
For more
Topic Summary
information
1.2 THE COMPANY OVERVIEW
Surf Lakes is an unlisted public company which provides a technologically advanced wave-generating
device and bathymetric* reef designs to operators of theme, amusement and watersports parks. It
was established in July 2016 and is headquartered on the Gold Coast in Australia.
Who is Surf Lakes? Surf Lakes has built a full-scale working prototype at its R&D facility in Yeppoon, Queensland, which is Section 2
being used to test and refine the technology, as well as provide demonstrations to licensees.
* Bathymetry refers to the study and mapping of the ocean or lake floor. Surf Lakes specific reef shapes (reef bathymetry) determine the size, shape and type
of wave that breaks over it.
What is the Vision and Vision: To become the biggest brand in surfing… Sustainably
Section 2
Purpose of Surf Lakes? Purpose: Building surfing communities to create a healthier world
The Surf Lakes product is the combination of a Central Wave Device (CWD), specially designed
reef bathymetry and tailored operating processes which together provide a unique commercial
opportunity for surf park and leisure operators.
The core of the technology is the CWD, which produces waves from the centre of a body of water. The
waves radiate outwards, towards the shoreline, allowing the ability to simultaneously create different
sized and shaped waves from a single oscillation or pulse. It also enables Surf Lakes to design the
What is the Surf Lakes surrounding reefs and beach to create five wave types surrounded by hundreds of metres of wave-
Section 4
Product? facing shoreline. It is the combination of the innovative, patent pending CWD and surrounding
bathymetry that provides its competitive advantage.
Surf Lakes offers two models of CWD and lake, both of which produce up to 2,000 waves per hour
in a range for every level of surfing ability. The original Surf Lakes XL model is based on the Yeppoon
prototype, requires a 3.6-hectare lake and produces 2.4-metre waves including expert and pro levels.
The Surf Lakes Compact model requires only 2 hectares has the potential to be built in areas closer to
higher population densities where larger land holding options may be limited.
The Offering is being conducted by the Company to:
• To complete commercial engineering design of the wave mechanism, drive machinery and reef
bathymetry
Why is the Offer being • Provide investment capital for the early stages of development of Surf Lakes facilities in the
conducted? State of Queensland Section 8.4
• Provide a working capital buffer to satisfy all financial requirements until the closing of a larger
fundraising planned for late-2021
PRIVATE & CONFIDENTIAL
PAGE 7
INTRODUCTION
COPYRIGHT 2021 SURF LAKES
For more
Topic Summary
information
1.2 THE COMPANY KEY FEATURES OF SURF LAKES’ BUSINESS MODEL
• Revenue generated directly from Surf Lakes’ CWD technology will consist of technology
licensing fees, territorial exclusivity fees, sales of the CWD device to surf park operators, and
operating service fees calculated based on the number of waves generated.
How will Surf Lakes
generate its revenue? • The development and ownership (including minority ownership) of surf parks will allow Surf
Section 6
Lakes to capture a share of revenue streams generated by the popularity of the surf parks as
a destination, and also give Surf Lakes greater control over the adoption of its technology and
development of its brand.
The primary target markets are property developers and water or theme park operators globally.
Both these groups have experience in large scale development, and in the case of theme park
Who is the target market operators, the experience required to successfully run a Surf Lake.
Section 4
for Surf Lakes? Based on sales enquiries received to date, the Company is discovering that its technology is
attracting entrepreneurs from many different business backgrounds, due to the revenue earning
potential.
Surf Lakes’ competitors fall into two categories:
• Alternative technologies – those companies who provide other wave surfing solutions for wave
Who are Surf Lakes or water park operators
competitors? • Alternative activities – those companies who offer other uses of available recreational space,
from rides and attractions such as water slides in the case of theme park operators, to facilities
for other sports such as golfing and skiing in the case of property developers
Surf Lakes’ sales strategy is to prioritise those who have shown eagerness to build their own Surf
Lake by lodging with the Company a detailed response to a Request for Proposal (RFP) document and
have the property, approvals and finance already in place. Applicants meeting the minimum criteria
What is Surf Lakes’ sales
are invited to enter into an Exclusive Territory Agreement to secure exclusivity over a desired territory
strategy? Section 5
for a defined period of time while definitive Exclusivity and License Agreements, Construction
Agreements and Purchase Agreements are negotiated.
The Company is building a healthy funnel for future projects.
PRIVATE & CONFIDENTIAL
PAGE 8
INTRODUCTION
COPYRIGHT 2021 SURF LAKES
For more
Topic Summary
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1.2 THE COMPANY KEY STRENGTHS
• High wave production levels – over 2,000 waves per hour
• Increased Surfer throughput capacity – up to 200 surfers per hour
• The largest waves – over 2.4 metre face height and 100 metre wave length in the XL model
Surf Lakes competitive
advantage • Simultaneous variety – up to five levels of waves, from beginner to expert, at the same time
Section 3
• 360 degree configuration means guaranteed offshore conditions regardless of wind direction
• Most attractive frontage – every direction from the wave lagoon is high value real estate for retail,
commercial, property development and recreational activities
Surf Lakes’ technology is anctipated to produce over 2,000 surfable waves per hour, double that of
Surf Lakes’ nearest competitor. Wave production potential is expected to translate directly into wave
Revenue generation
revenue generating potential. Additionally, as the Surf Lakes CWD is centred in the middle of a body
potential Section 3
of water, it creates beachfront property all around it. This has its own potential for significant revenue
from property development, cafes, restaurants, shops and commercial offices.
The global theme and amusement park market is predicted to grow by over six per cent per annum
for the next three years to over US$60 billion per annum. The fastest growing regions are predicted
Rapidly growing and
to be the Middle East, North Africa, Central and South America and, Asia Pacific. Property developers
accessible market
and theme park operators are comfortable with investing millions into an attraction that can help drive Section 4
other revenues. (Source: IAAPA)
PRIVATE & CONFIDENTIAL
PAGE 9
INTRODUCTION
COPYRIGHT 2021 SURF LAKES
For more
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information
1.2 THE COMPANY DIRECTORS AND MANAGEMENT
The Board comprises:
• Charles Foster (Chairman)
• Aaron Trevis (Founder, Executive Director & CEO)
Who are the Directors of
• Reuben Buchanan (Co-Founder, Non-Executive Director) Section 7
Surf Lakes?
• John Diddams (Non-Executive Director)
• Troy Warfield (Non-Executive Director)
Management comprises:
• Aaron Trevis - CEO
• Joven Demonteverde - CFO
• Ed Szymanski - Head Of Engineering & Production
• Kit Sidwell - Lead Mechanical Engineer
• Adam O’rourke - Lead Civil & Structural Engineer
• Wayne Dart - Global Park Operation Manager & Media Director
Who are the • Carolyn Griffith - Legal Counsel
Management of Surf Section 7
Lakes? • Jacki Patterson - Site Co-ordinator
• Lewis Glynn - Head of Project Delivery
• Dr Matthew Woolley - Risk & Safety Advisor
• Talon Clemow - Film & Content Manager
• Cara Campbell - Office & Administration Manager
• Tony Lines - Human Resource Manager
PRIVATE & CONFIDENTIAL
PAGE 10INTRODUCTION
COPYRIGHT 2021 SURF LAKES
1.3 RISK FACTORS For further information about the Company’s efforts
to mitigate technological risks, see Section 6.3,
right at the beginning of the process. There is a risk
that if a client is slow in making payments or defaults
“Protection of Intellectual Property” and Section 6.4, on payments, the Company could experience a cash
Investment in the shares of Surf Lakes may be “Results of Full-Scale Prototype Testing.” shortfall on the related project. If payment delays and
considered a high risk investment because of the early cost overruns occur across several projects at the same
stage in the Company’s development, the illiquidity time, the result could have a material adverse effect on
of its share market, the competitive nature of its OPERATIONAL RISKS the financial health and prospects of the Company.
business sector, and other considerations including Most operational risks are associated with The Company is attempting to mitigate the risk by
those discussed in this section. Investors are urged to management’s ability to operate the Company effectively requiring that 50 per cent of the entire contract sum for
consider these risks and make their own independent and efficiently. any turnkey product order shall be paid upfront before
judgement of the suitability of such an investment to The Board believes that the Company currently has work can begin. This is a common practice in the supply
their own circumstances. an adequate number of management and staff for the of infrastructure equipment. After the first payment,
current phase of Surf Lakes’ development. Part of the the remaining 50 per cent will come in over five equal
funds raised in the Offering will be directed toward instalments based on the achievement of certain
TECHNOLOGICAL RISKS filling key positions for engineering, operations and milestones. The milestones are tied to the inspection
In the Company’s view, the Surf Lakes CWD wave finance staff as different milestones are reached. The of fabricated components at the factory, so that the
machine is an innovative technology. The Company’s recruitment process will be targeted to ensure that Company can maintain ownership of and control over the
technology risk is predominantly in the CWD and can be the Company has the right resourcing ahead of its first component if payment is not received.
broadly categorised into wave quality and reliability risks. construction project. The Board feels this approach, in conjunction with
To mitigate these risks, the Company built prototypes to Investors assume the risk of any failure on the part of careful project and financial management, will be
prove and test the concept and discover any issues that Surf Lakes’ management to adequately manage the sufficient to prevent a cash shortfall during the contract
may impede performance or reliability. business and protect the interests of its shareholders. fulfillment stage.
As the designer of an innovative technology, the For further information about the background and Unexpected costs and delays in projects also create
Company must protect its intellectual property rights. experience of the Surf Lakes management team, see financial risks for the Company. Any major construction
There is a risk that such rights could be lost or eroded Section 7, “Board & Management.” project requires careful planning and tight controls,
due to adverse determinations of government patent Some operational risks may be beyond the control of and can be exposed to external economic, political and
offices, failure to secure or enforce intellectual property management. environmental shocks. Project cost overruns and delays
rights, or competing clairms by other inventors to rights could have a material adverse effect on the financial
over the CWD and other related technologies. FINANCIAL RISKS results and prospects of the Company.
Management prioritises the security and protection of The greatest financial risk to the Company is its access As a Company entering a global market, it will necessarily
its intellectual property rights to minimize the risk of to capital. It must maintain its Research & Development face foreign exchange rate risks which are different for
any such adverse developments. Surf Lakes is currently facility and meet critical ongoing costs, particularly each country in which a Surf Lakes project is located.
using a mixture of contractual, regulatory and technical during the period prior to receipt of payment for its first The Company will be less insulated from international
methods to protect its intellectual property. turnkey facility order. The Offering itself is an effort to economic and currency disruptions than companies
Because the technology has never been broadly mitigate this risk. operating in the domestic market. Such disruptions
adopted, it may be necessary to obtain licences and Another major financial risk will occur in the could have a material adverse effect on the Company.
permits from various government authorities around commercialisation phase. As the Company enters this
the world at such time as the technology is placed into phase, it will be required to meet the demands of each
service. There will be no direct precedent to the issues new project from progress payments received. There is a
that may be raised in such licencing processes. risk that the timing of cost outflows may be ahead of the
Any adverse developments that interfere with the timing of revenue inflows, especially when the Company
PRIVATE & CONFIDENTIAL
Company’s maintenance and enforcement of its has little prior experience of delivering a turnkey
intellectual property rights, or that impede the broad product.
adoption of the Company’s technology, could have a The components of Surf Lakes’ machinery cost a
material adverse effect on the business and prospects significant amount to fabricate. Additionally, there are
of Surf Lakes. significant design costs to each project that occur
PAGE 11INTRODUCTION
COPYRIGHT 2021 SURF LAKES
INVESTMENT RISKS to move forward with the development of recreational
Funding Risk: Higher than expected expenditures may facilities during the covid-19 pandemic. Even if the
have a materially adverse effect on the Company’s pandemic does not have an effect on the Company, no
financial position. There is a risk that the Company assurance can be given that the covid-19 pandemic
may be unable to raise adequate capital to address will not be followed by other similar or worse disruptive
unforeseen shortfalls in commercialising its technology. events.
If the Company addresses its need for capital by raising The pandemic and other events that have the effect
funds through the issue of new shares, the ownership of suppressing travel, tourism, recreation and social
of existing shareholders, including subscribers in the gatherings generally could have a material adverse
Offering, will be diluted. effect on the Company’s business model and prospects.
Exit Risk: Surf Lakes is not currently listed on a securities
exchange such as the ASX. It may be assumed that an
investment in the shares of Surf Lakes will be difficult OTHER RISKS
to liquidate at a price reflecting its full value, or at all, Other risks faced by the Company include changes
so long as the Company is an unlisted company. The in economic conditions such as inflation and interest
ability of Surf Lakes to offer an exit opportunity for its rates; changes in market conditions affecting supply
shareholders is subject to a number of factors, some of and demand; changes in laws and regulations, including
which are outside the control of the Company. These taxation and accounting rules; government confiscation
factors include the market position and competitive or expropriation; and natural disasters, social upheaval
success of the Company, as well as prevailing equity and war.
market conditions. Events beyond the control of the Company could affect
Speculative Investment: Potential investors should its business and prospects through their impact on
consider that an investment in the Company is highly staff, operating costs, and market conditions generally.
speculative and should consult their professional The Company’s future revenue and operations can be
advisers before deciding whether to participate in the materially affected by these factors, which are beyond
Offering. the control of the Company.
The risks mentioned in this section ought not to be
taken as exhaustive of the risks faced by the Company
PANDEMIC RISK or by investors in the Company. These and other factors
The Company’s business strategy is based on may materially affect the financial performance of the
management’s belief that recreational activities, and Company and the value of the shares to be issued in the
surfing in particular, have universal and growing appeal, Offering.
and that people will be able to avail themselves of
opportunities to use wave park facilities.
The covid-19 pandemic has challenged some of these
assumptions. Travel is difficult and tourism and air
travel are greatly reduced as a result of the pandemic.
The duration of the pandemic’s effects is as yet still
unknown. The first commercial operation of a Surf
Lakes CWD unit is expected to be in 2022. Management
PRIVATE & CONFIDENTIAL
believes that the effects of the pandemic will likely have
subsided by this time.
No assurance can be given that the pandemic effects
will be over by the time Surf Lakes units are ready for
operation, or that Surf Lakes’ customers will be willing
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COPYRIGHT 2021 SURF LAKES
COMPANY
OVERVIEW
PRIVATE & CONFIDENTIAL
Mark and son Jay Occilupo split Occy’s Peak, a perfect
A-frame wave that barrels both left and right
PAGE 13COMPANY Jay Occhilupo takes to the air on Occy’s right
COPYRIGHT 2021 SURF LAKES
OVERVIEW
2.1 SURF LAKES’ VISION AND PURPOSE 2.2 BACKGROUND, HISTORY AND KEY MILESTONES
Surf Lakes’ motto is “Everybody Gets a Break.” Surf Lakes exists to bring value to the Surf Lakes’ Founder Aaron Trevis first conceived the idea of using concentric waves for
community and shareholders via the provision of world-class surfing waves and surfing surfing, when he was skimming rocks in a lake with his children. A series of tests began,
related entertainment in safe, family-friendly facilities. Surf Lakes’ aim is building starting in a backyard swimming pool, attempting to discover the best shape of device
surfing communities, to create a healthier world. needed to create a credible wave.
The pool progressed to a 1:10 scale model on a friend’s farm where, with help from Dr
Vision: To become the biggest brand in surfing… Sustainably. Chris Hawley, another of Surf Lakes’ co-founders, they were able to produce a powered
device that could generate well-shaped waves. The success of this model attracted
Purpose: Building surfing communities to create a healthier world. another founding director, Reuben Buchanan.
PRIVATE & CONFIDENTIAL
Sufficient money was raised to produce a much larger 1:5 scale model on a property
outside of Melbourne. The tests and the resultant photographs and video were
successful, both technically and in attracting further investment into the Company. The
succession of larger models has culminated in the construction and development of
the full-scale prototype now operating in Yeppoon.
PAGE 14COMPANY
COPYRIGHT 2021 SURF LAKES
OVERVIEW
NOTABLE MILESTONES
2016 2018 2019 2020 2021
• Former President of Top Golf • Florida ETA signed
• Surf Lakes Holdings Ltd is • Construction, engineering and lining • Exclusive Territory Agreements
International Troy Warfield - joins Surf • Texas ETA signed
incorporated of full-scale prototype in Yeppoon signed (USA)
Lakes Board of Directors • Tennessee ETA signed
• Seed funding raised via Axstra Capital completed in October • Announcement of commencement
• In the first half of 2020, a new liner • Israel RFP commenced
• 1:5 scale model constructed in • Phase 1 commissioning and testing of negotiation of first full Purchase &
Broadford, Victoria system was tested and installed
October 22 License Agreement • Global sales team appointed
• Full-scale CFD modelling begins • Changes were also made to several of
• Release of footage – global media • Phase 2 commissioning completed • Key project delivery and engineering
the reefs to improve wave quality
received in August staff appointed
• In August the highest stroke of
2017 • Exclusive Territory Agreement signed • Target full sized wave achieved – with
the wave machine was achieved,
(USA) wave face height of 2.4 metres at The
• Central column testing at 1:5 scale producing waves at The Island / Level
• Redesign and strengthening of CWD Island break
site 5, which were over 2.4m wave-face
• Achieved 15 second rides at Occy’s height. Surf Lakes believes that this
• Secured 15 hectares of land in
Peak
Yeppoon, Queensland is the largest wavepool wave ever
• Sunshine Coast Exclusive Territory produced in the world
• 1999 World Champion Mark Occhilupo
Agreement (first payment made, • Los Angeles License agreement
engaged as Ambassador
pending contract finalisation) – signed and paid in mid 2020
• Construction of full-scale prototype in
September 2019
Yeppoon announced • Nevada License agreement signed in
• First Licensee Demonstrations – mid 2020
• Work starts on Yeppoon site in
October 2019
PRIVATE & CONFIDENTIAL
October • New footage and corporate video
• Excavation of full-scale lake released, resulting in more licensee
completed inquiries (over 600 in total have been
received)
PAGE 15COMPANY
COPYRIGHT 2021 SURF LAKES
OVERVIEW
2.3 THE PROBLEM WITH OCEAN SURFING
Surfing participation rates are small when compared to Surfers and non-surfers alike identified these issues …
mainstream sport. • Overcrowding on waves during good swells
Currently there are an estimated 35 million surfers • Poor weather not conducive for good waves
worldwide (including bodyboarding and stand up-paddle
• Unavailability of night surfing
boarding) who partake in the sport regularly (more than
twice per year). This is only 0.5 per cent of the global • Strong tides and dangerous rips
population. Surf Lakes wave parks provide a solution to all of these
In relation to surfing popularity (ie fan-base), it is problems within a controlled environment, with repeatable
estimated that the World Surf League (WSL) attracts waves at an anticipated rate of 2,000 surfable waves per
less than one million viewers to each of its surfing hour or more, and waves for all levels from beginner to
competitions, which over 10 events equates to under 10 expert simultaneously.
million viewers per annum.
Surfing certainly pales in significance compared to global
fan bases of:
• Soccer – 4 billion
• Tennis – 1 billion
• Golf – 450 million
The problem or challenge is accessibility to waves or to Currently, there are an
the ocean itself, either due to inland locations or weather
patterns that do not produce ridable surf. Also, many non-
surfers have identified certain fears that discourage them
estimated 35 million surfers
from becoming regular surfers.
Surf Lakes conducted a survey of non-surfers in 2018 via
worldwide (including body
social media. When asked why they had not tried surfing:
boarding and stand up-paddle
• 30 per cent said they did not believe their fitness level
met the requirements for ocean surfing boarding) who partake in the
• 19 per cent said they had a fear of sharks and other
dangerous marine life sport regularly (more than twice
• 18 per cent said they do not have easy access to the
ocean or surfable waves per year). This is only 0.5 per
PRIVATE & CONFIDENTIAL
• 17 per cent said they were afraid of the big waves
cent of the global population.
Jay Occhilupo navigates the barrel
during a recent test session
PAGE 16COMPANY
COPYRIGHT 2021 SURF LAKES
OVERVIEW
2.4 THE SURFING BOOM
Despite these limitations, over the next 10 years, there is expected to be significant growth in surfing popularity and
participation, resulting in an unprecedented boom in the industry. There are three factors that will contribute to this
predicted growth:
1. TECHNOLOGY 2. OLYMPICS 3. WAVE POOLS
• Global manufacturing at scale has resulted in Surfing will make its debut appearance in the 2021 There are currently only seven surfing-focused wave
cheaper surfboards and accessories, opening up Summer Olympics in Tokyo, Japan, followed by the 2024 pools in the world that are open to the general public.
accessibility to a larger market. Olympics in Paris and the 2028 Olympics in Los Angeles. However, according to Wavepoolmag.com there are
• Free, accurate surf forecasts mean surfers know It is expected that the Tokyo Olympics will have over 4 another 40 wave pools announced, under construction,
where to go, and when, up to 14 days in advance. billion views, which means that more people will watch or in the planning stages. In the next 10 years the number
surfing at the Olympics than have ever watched surfing of wave pools could rise dramatically. More wave pools
• Social media is raising awareness and driving desire. will increase accessibility and attract more surfers,
before! This will dramatically raise global awareness of
• Dozens of free tutorials on YouTube enable anyone to surfing. driving further growth in the surf industry.
learn how to surf. Wave pools can bring the exciting sport of surfing to
Technology drives down cost, and increases accessibility cities and countries that have never experienced surfing
and visibility of the sport, which opens up surfing before, and provide more consistent conditions in
to a broader market. These reduced entry barriers, existing surfing areas.
together with free information on where and how to surf,
PRIVATE & CONFIDENTIAL
encourages more people to enjoy surfing around the
world. However, with limited surf breaks, there is often
overcrowding at popular surf breaks.
PAGE 17Dean Morrison "backdoors" the slab, a level 5 "pro" wave
COPYRIGHT 2021 SURF LAKES
IDEAL ATTRIBUTES OF A WAVE POOL:
• Multiple breaks – min two lefts and two rights 2.5 THE SOLUTION TO PROVIDE A Surf Lakes facility will
• Multiple wave sizes and variety at the same time SURFING TO EVERYONE
• Ample supply of at least 1,000 waves per hour IIn a recent survey conducted by Surf Lakes, 83 per cent of have all of the attributes to
• Ocean-like experience – surfing towards the beach, non-surfing respondents said they would try surfing if:
• They had an opportunity to access a safe and
meet the criteria mentioned,
away from walls and fences, on waves that closely
mimic natural ocean waves
controlled environment. providing a sound business
• Guaranteed offshore conditions
• They had an opportunity to access quality waves.
• They had an opportunity to access conveniently
model and solution for
• Attractive shoreline frontage for retail, commercial and
property development
located sites within 100 km. any group wishing to bring
With this in mind, the ideal solution is to construct an
• High participant throughput to maximise revenue for artificial wave making mechanism and lagoon, located on surfing to their community
peak periods such as summer holidays, weekends and available land near existing population centres whether
or existing asset.
PRIVATE & CONFIDENTIAL
Friday and Saturday nights coastal or land-locked.
• Suitable for multiple types of surf craft, not just short
boards
• Availability of night surfing
PAGE 1803
COPYRIGHT 2021 SURF LAKES
SURF LAKES’
TECHNOLOGY
PRIVATE & CONFIDENTIAL
The "pro" level wave is an exciting
challenge for high level surfers.
Former pro Dean "dingo" Morrison
gets deep in the barrel
PAGE 19SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
3.1 HOW SURF LAKES WORKS DIRECT COMPARISON TO COMPETITOR TECHNOLOGIES
The Company’s technology produces a variety of high-
quality waves that closely mimic those produced in the AMW PERFECT SURF LAKES
KSWC THE COVE
ocean. The number of waves produced, and the enormous SWELL XL MODEL
wave-facing shoreline, makes it an attractive commercial
opportunity for potential operators. Maximum wave size 2m 2.1m 1.8m 2.4m+
It works by creating concentric waves that radiate
outwards from the Central Wave Device (CWD). The waves Surfable waves per hour 20 1,000 300 2,000+
break upon a variety of submerged reefs and shorelines.
Each reef is contoured differently so as to allow the wave Maximum ride length 45s (300m) 15s (80m) 8s (60m) 15s (80m)
energy to dissipate and therefore to create waves that
break at different speeds, shapes and sizes. Up to 10
separate surfing waves (five lefts and five rights) can be Number of outer breaks 2 4 4 up to 10
generated from each pulse of the CWD.
Maximum surfer throughput per hour
In the diagram on the following page, each CWD pulse 2 100 15 200+
(10 waves/hour/surfer incl learn-to-surf)
creates eight surfable waves, of between 10 and 15
seconds in ride length. The inside of each reef is used for
those learning to surf, each with up to 10 beginners.
See “Section 5 – Competitor Overview” for further information about competitor technologies.
Therefore, in a four-reef configuration, one pulse of the
CWD can be utilised by up to 48 surfers – 40 beginners on
the inner reefs and eight intermediate to pro on the outer
reefs. This maximises wave energy usage, minimising
energy cost per wave.
The CWD pulses or oscillates up to six times in a row
creating sets of waves, much like the ocean. Six pulses,
which are each six seconds apart, produce five surfable
waves at each break (the first wave is small). So, six
pulses over eight breaks creates 40 intermediate to pro
waves plus 20 beginner waves, all within 60 seconds.
This cycle is repeated every few minutes. Therefore, the
Surf Lakes technology is capable of producing over 2,000
rideable waves each hour.
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PAGE 20SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
3.2 ABOUT THE TECHNOLOGY
Surf Lakes has invented a revolutionary, proprietary method of producing high-quality surfing waves in a controlled lake environment. By sending large concentric waves over
separate reef breaks, a Surf Lakes facility may be capable of producing over 2000 waves per hour. Each wave varies in size, shape and length, allowing surfers of all abilities to surf
at once.
The science and engineering behind Surf Lakes is truly revolutionary. Unique bathymetric designs of our pool floor mimic nature and help to produce ocean-like waves. The floor
design interacts with our patented wave mechanism where one central swell generates up to 10 separate waves to the surrounding reefs and beach breaks.
Surf Lakes’ technology is the world’s first multi-break surf park technology, offering up to five different skill levels of waves simultaneously. This allows for surfers of all abilities
and a wide variety of surf craft, to surf at the same time, without the need to run different sessions. For Surf Lakes operators, it means maximum options and flexibility for usage.
SURF LAKES’ PRODUCTS
Surf Lakes has two products, each designed to appeal to different markets and also suit varying locations and site sizes. The two models include the Surf Lakes “standard” model
and the Surf Lakes XL model.
The advantage of utilising Surf Lakes unique concentric wave making technology, is such that wave making ability stays the same regardless of size, therefore the delivery of
maximum wave numbers is maintained. When choosing wave making technology, wave count per hour and wave quality are paramount, which is why a Surf Lakes product is
superior to the competition.
PRIVATE & CONFIDENTIAL
Surf Lakes XL model Surf Lakes Stabdard model
PAGE 21SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
SURF LAKES’ PRODUCTS - SURF LAKES XL
Surf Lakes XL facilities are similar to a ski resort, with waves colour-coded, based on their level of difficulty. Beginners can feel safe and secure knowing which waves to surf as they learn
and improve their skills, in a controlled environment. The beauty of our design means you don’t have to wait for a specific session that suits you. We produce waves that suit all levels of
ability simultaneously.
Surf Lakes XL, has a larger footprint and is designed to cater for the beginner through to pro markets and be capable of catering for large international events such as the Olympics. The
larger footprint will allow for Surf Lakes XL models to be built with the notion of becoming a premium surf destination or resort appealing to the beginner, families and also the hard-core
surfer. With the potential to house five levels of ability simultaneously, potential wave shapes can include:
LEVEL 1 - BEGINNER LEVEL 2 - INTERMEDIATE LEVEL 3 - ADVANCED LEVEL 4 - EXPERT LEVEL 5 - PRO
The Beginners area is the white-wa- The Intermediate wave is a rolling The Advanced wave is a slightly The Expert break has a five second The Pro break is a heavy slab, suit-
ter area that rolls through the inside beach break – a gentle wave that’s larger wave, with a steeper take- barrel, followed by a section for able for high level surfers and body-
of the reefs. Beginners can learn to easy to catch, ride and learn to do off and more critical sections for advanced turns. The size, speed and boarders. It features a steep, difficult
paddle, catch waves and stand up. turns. This wave is also suitable for advanced turns as well as aerial power of this break is suitable for take-off with a fast, heavy barrel.
longboarders manoeuvres. competitions and events.
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PAGE 22SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
SURF LAKES’ PRODUCTS - SURF LAKES STANDARD
Surf Lakes standard has a smaller footprint and is designed to cater for the beginner to intermediate markets. The smaller footprint will allow for Surf Lakes standard models to be built in
areas where larger parcels of land are scarce. And with a smaller price tag, while still producing up to 2000 waves per hour, the potential for optimum ROI is high.
LEVEL 1 - BEGINNER LEVEL 2 - INTERMEDIATE LEVEL 3 - ADVANCED
The Beginners area is the white-water area that rolls through The Intermediate wave is a rolling beach break – a gentle The Advanced wave is a slightly larger wave, with a steeper
the inside of the reefs. Beginners can learn to paddle, catch wave that’s easy to catch, ride and learn to do turns. This wave take-off and more critical sections for advanced turns as well
waves and stand up. is also suitable for longboarders as aerial manoeuvres.
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PAGE 23SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
SURF LAKES’ PRODUCTS - COMPARISON TABLE
SURF LAKES SURF LAKES SURF LAKES SURF LAKES
STANDARD XL STANDARD XL
BASIC SPECIFICATIONS
Circa US$20m (NB: Pricing Circa US$30m (NB: Pricing SURF CRAFT
Cost will vary subject to site, will vary subject to site, Shortboard Yes Yes
country, geotechnics etc) country, geotechnics etc)
Bodyboard Yes Yes
Dimensions 155 metres x 125 metres 210 metres x 170 metres
Bodysurfing/Handplane Yes Yes
Size (Water Coverage Only) 2 ha 3.6ha
Kneeboard Yes Yes
Capability 2000 Waves Per Hour 2000 Waves Per Hour
Longboard Yes Yes
Construction Time Frame 9-12 months 12 months
Waveski TBC Yes
Max Wave Height 1.8 – 2 metres 2.4 metres plus
Stand-up Paddle TBC Yes
Max Wave Length 50 metres 100 metres plus
Surf foil / SUP foil TBC Yes
Ride length time 8-10 seconds 10-15 seconds
WAVE TYPE AND ABILITY LEVEL
Beginner Wave Yes Yes OTHER ACTIVITIES
Intermediate Wave Yes Yes Learn to Swim Yes Yes
Advanced Wave Yes Yes Learn To Surf Yes Yes
Expert Wave No Yes Learn To Dive Yes Yes
Pro Wave No Upon Request Kayaking Yes Yes
E-foiling TBC Yes
WATER TYPE Sailing (small sail and wind surfing) TBC Yes
Salt Yes Yes Connected water park (toddler pool
TBC TBC
and slide)
Fresh Yes Yes
Demonstration and Compe-
Other TBC TBC Demonstration, beginner to
Events tition Amateur to Interna-
intermediate standard
tional Pro
PRIVATE & CONFIDENTIAL
PAGE 24SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
KEY ADVANTAGES
ONE OF THE HIGHEST WAVE PRODUCTION LEVELS AVAILABLE: SIMULTANEOUS WAVE VARIETY: Surf Lakes facilities have been designed
Surf Lakes’ technology is aiming to produce over 2,000 surfable to have multiple breaks; simultaneously producing waves for learners
waves per hour suitable for all skill levels. through to advanced surfers. Competitor technologies require the
wave generator to be adjusted to suit a particular level of surfer.
MOST BEACHFRONT: A standard sized Surf Lakes’ wave park is designed
to create at least 800 linear metres of beachfront. This is spread over LOW SETTLEMENT TIME: Due to the unique reef design of Surf Lakes, the
four distinct beaches and can provide operators with excellent retail, waves are not affected by backwash from the shoreline or walls.
entertainment and property development opportunities.
OFFSHORE CONDITIONS GUARANTEED: Because waves break in all
directions, half of the breaks will always be off-shore, regardless of
EFFICIENT: Surf Lakes’ technology is designed to maximise the return wind direction.
on energy spend. Each swell pulse can turn into 10 separate waves,
maximising customer participation and throughput.
POTENTIAL FOR COMPETITIONS: Surf Lakes has the potential to transform
the running of surf competitions. Heats can be run simultaneously
across the eight separate breaks, allowing an entire top tier surfing
REALISTIC SURFING EXPERIENCE: Surf Lakes’ concentric wave technology
event to be completed in one to two days (depending on format). This
is designed to offer the most realistic surfing experience:
compares to the average time for a top tier ocean or wave pool event
• The technology mimics ocean ground swells, with waves of three to five days. Alternatively, fewer breaks could be used for a
coming in sets of two to six surf competition, leaving the remaining waves free for public use.
• Waves break over specially shaped reefs
• Surfing towards the beach offers the most natural surfing MAXIMISE CROWD NUMBERS: With shore breaks potentially on every
environment possible – no sight of walls, cages or mechanisms side and a perimeter shoreline of over 800 metres, more learners,
nearby swimmers and bodysurfers will likely be able to enjoy a Surf Lakes
Each wave starts as an A-frame, then peels off both left and right, just facility at the same time as the main breaks are being surfed;
like a perfect ocean reef break. potentially increasing the crowd numbers and revenue potential for
the operator.
PRIVATE & CONFIDENTIAL
MAXIMISE RETURN ON CAPITAL INVESTED: With overall construction costs BEST PROPERTY DEVELOPMENT POTENTIAL: The XL model’s 800 metres of
(excluding surrounds) of approximately US$30 million for the XL model shoreline potentially allows for property development opportunities
and US$20 million for the Compact model, a Surf Lakes facility is where every beachfront is looking into the waves. It also may allow
designed to generate a great return on capital invested. the operators to segment the park into separate areas, further
maximising the site and potential uses.
PAGE 25COPYRIGHT 2021 SURF LAKES
Kids learning to surf at the Level 1 Beginner break Luca Doble surfs the Level 2 Intermediate break
Wayne Dart kneeboards the Level 3 Advanced break Dale Chapman SUP foils across the channel between the breaks
PRIVATE & CONFIDENTIAL
PAGE 26SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
3.3 ENERGY EFFICIENCY
One of the interesting elements of the Surf Lakes system The energy sourcing and balancing is a very important
is the energy efficiency of wave creation, and the element for each site and the goal at each site should
opportunity to recycle energy and/or create renewable be to achieve the status of energy neutral or even net
energy to reduce operational costs. positive.
The CWD is essentially a floating “ship” that is pushed
upwards by the pressure in the centre column. After it
reaches maximum height, it falls back down and a pulse
is generated, creating multiple waves. When the CWD
reaches the bottom of the stroke, the buoyancy lifts it
again as a simultaneous pressure force is applied to
create the smooth upward movement to the desired
stroke level (and therefore wave size). The repeated cycle
overcomes some of the inertia of the large mass, and the
CWD is tuned to move in harmony with the pulsing swells, le
sib gy
thereby minimising the energy required. pos ener
re l”
s a da
The interaction between the waves and the reefs is also ent “ti
rr &
cyclic, and is designed to creat efficient motion, minimum cu ve
u rn f wa
wave disturbance and an opportunity to recover energy t
Re rce
o
from the moving water. so
u
The waves break and dissipate energy over the shallow
reefs. The overflow gutters around the shoreline collect
the remaining wave energy and water volume, redirecting
it to the deeper channels, where the water current flows
back out to the centre. The outward wave movement
in the channel and the returning flow of water are both
sources of kinetic energy that could be utilised for
electricity generation.
Wind and solar generation are more obvious opportunities
for renewable energy generation around the site, using
buildings and shade structures for placement of solar
cells. Wind turbines can be placed in various locations,
including around the CWD on the barrier structures.
Energy storage is a possibility because the system
uses industrial scale compressors to generate high-
PRIVATE & CONFIDENTIAL
pressure air, which must be stored. This compressor and
storage system capacity could be scaled such that the
compressors may be used to store excess electricity from
wind and solar generation. Battery storage is another
option that could be utilised to balance the energy use SOLAR & WIND ON ROOF
of the park and to feed back into the grid if desired.
PAGE 27SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
3.4 CREATIVE DESIGNS
A key advantage of Surf Lakes’ system is its ability to be
designed in a layout that best suits the owner/operator.
Possible themes for a site are limitless. The lake can
be created in various sizes and shapes, within some
limitations and obviously subject to budget constraints.
Some clients wish to fit their sites into an existing lake Prototype R&D Facility – Raw Form
– where it will be drained so that the bathymetry can be
formed and lined, but the natural shoreline shape remains.
Others wish to fit the lake profile with natural landforms
such as canyons, so a bespoke layout is required. Some
have open space and can create a shape to suit. The
predominant wind direction/s play a role in design as
ideally the client would wish to face the premium breaks
into the trade winds, to optimise conditions and therefore
revenue potential.
ILLUSTRATIVE LAKE SHAPES
Same Location – Natural Theme
PRIVATE & CONFIDENTIAL
Same Location – Futuristic
PAGE 28SURF LAKES’
COPYRIGHT 2021 SURF LAKES
TECHNOLOGY
3.5 RELATED BUSINESS AND COMMUNITY IMPACTS
Events and Conferences
In addition to creating a surf sports Surf Lakes has the ability to draw world
industry, a Surf Lakes facility class water sport events to areas
opens multiple opportunities to the previously unthought of.
surrounding community. Weekly surfing events are a reality,
with the potential to attract associated
Surf Lessons and Water Education advertising and sponsorship
Surf Lakes presents opportunities for revenues, along with gate takings and
surf coaches, beach marshals and merchandising. Major surfing events
lifeguards to practice their skills and can be held throughout the year with
teach others. the advantage of knowing that waves
There is also opportunity for the Surf will always be available. With the ability
Life Saving movement to extend inland to create consistent waves of varying
and create surf clubs to educate others shapes and sizes, there is also an
about surf and water safety. opportunity to develop entirely new
Advanced surf training for existing surfing formats with a broader viewer
surfers and pro surfers is also an option, appeal.
as the waves will be consistent during
the day and night. Community Development Opportunities
A Surf Lakes facility is a perfect place
Tourism and Accommodation to build teams, whether they be school
Having a Surf Lakes unit within a new groups, community or corporate
or existing them park or water park groups. A day at a Surf Lakes facility
creates an incredible, world-class can be included in a corporate training
tourism drawcard. The ability to create experience or end of year reward.
waves day and night as well as host Schools located inland can incorporate
international surf events, will captivate surfing into the normal sporting
and entice people from domestic and program.
international markets.
Aided by the 360 degree foreshore with Merchandise and Equipment
a lagoon view, the backdrop is perfect The potential sale of surf boards, surf
for the creation of short- and long-term clothing and accessories is another
accommodation. upside for profitable surf parks,
as thousands of new entrants are
introduced to the surfing lifestyle.
PRIVATE & CONFIDENTIAL
Pro-surfer Louie Hynd on his backhand
at the slab, a Level 5 Pro break PAGE 29You can also read
