This Statement is developed to warn about the main risks associated with investing in the projects presented in this Neosun Company’s prospectus (hereinafter referred to as the Company). In general, risk represents the possibility of losses related to investments in the Company due to various adverse factors.
The Statement is provided to all individuals and legal entities intending to invest in the Company. The Statement discloses the main risks taken by investors. The Statement does not disclose all risks associated with the Company’s activities. Individuals intending to invest in any form should carefully consider whether the risks listed in the Statement are acceptable to them, taking into account their personal circumstances and financial capabilities. The Company assumes that the investor accepts the specified and possible risks associated with investment.
1. Investment risks. The risk of not receiving expected returns, losing some or even all of the invested funds.
2. Systemic risk. The main factors affecting the level of systemic risk include, but are not limited to, the political situation, the specifics of legislation, currency regulation and the likelihood of their change, the state of government finances, and the presence and degree of development of the country’s financial system.
3. Market risks. When providing investments, risks associated with the financial condition of the investment recipient company are taken into account, including the risk of bankruptcy of the investment recipient company, i.e., the risk of losses due to the insolvency of the investment recipient company, which will lead to the loss of some or even all of the invested funds.
4. Currency risk. Currency risk manifests itself in the unfavorable change of the local currency exchange rate against foreign currency, in which case the income from asset ownership may be subject to inflationary effects, resulting in the loss of part of the income, as well as losses. Currency risk can also lead to a change in the size of obligations related to foreign currency or foreign financial instruments, which can lead to losses.
5. Interest rate risk. It manifests itself in the unfavorable change of the interest rate. Interest rate risk may be due to the mismatch of the maturity (repayment) of demands and obligations, as well as the unequal degree of change in interest rates on demands and obligations.
6. Bankruptcy risk. This risk manifests itself in a sharp drop in the share price of a joint-stock company that has been declared insolvent, or in anticipation of such insolvency.
7. Liquidity risk. This risk is manifested in a reduced ability to sell an asset at the necessary price due to a decrease in demand for them. This risk may arise, in particular, when there is a need for a quick sale of the asset, resulting in losses associated with a significant decrease in their value.
8. Legal risk. It is associated with possible negative consequences of the approval or amendment of regulatory legal acts, self-regulatory organization standards, regulating the securities market, or other sectors of the economy, which may lead to negative consequences.
9. Risk of theft of funds and leakage of confidential information. When using electronic communication tools and the Internet, there is a risk of theft of funds from accounts and leakage of confidential information.
This information (including securities, other financial instruments, ideas, and phrases) is not an offer or an individual investment recommendation, and the financial instruments or transactions mentioned therein may not correspond to your investment profile and investment goals (expectations) and are presented solely for information and analytical purposes. Persons entering into negotiations confirm their familiarity and agreement with the risk statement posted on the page: https://neosun.com/risk-disclosure/.