An investment in securities involves a high degree of risk. All investors should carefully consider the following factors in addition to the other information in this investor relations website before investing in Helbor’s securities. In general, investing in the securities of issuers in emerging market countries, such as Brazil, involves a higher degree of risk than investing in the securities of U.S. issuers or issuers in other countries with highly developed capital markets. Helbor’s business, financial condition, results of operations and prospects may be materially adversely affected by any of these risks.
The risks briefly described below are those that the Company currently believes most likely may materially affect its performance.
Risks Related to the Company
Helbor may be unable to successfully implement the Company’s business strategy, including its low income residential developments and its large-scale low income residential developments and the geographical diversification of its activities.
The Company is subject to risks normally associated with providing financing to customers.
Helbor may be unable to sustain or increase its historical growth rate.
Suspension, interruption or a delay in the process for approving projects and financings by the CEF may adversely affect Helbor’s business, financial condition and results of operations.
Helbor’s business depends on the availability of financing to satisfy its working capital needs, fund the purchase of land and finance the construction of its projects.
The loss of members of the Company’s senior management or its inability to attract and retain additional members may adversely affect its business, financial condition and results of operations.
Delays or technical difficulties with the Company’s real estate projects that are beyond its control may adversely affect its reputation and its business as well as expose Helbor to civil liability.
Helbor’s business may be adversely affected if Helbor fails to obtain authorizations required for its projects on a timely basis.
The Company’s real estate activities are concentrated in a few large-scale, low income residential developments.
Risks Related to the Brazillian Real Estate Industry
The real estate development industry in Brazil is exposed to risks associated with the purchase, development, construction and sale of real estate.
The real estate development industry in Brazil depends on the availability of credit, particularly for projects targeting low income residential developments.
The real estate development industry in Brazil is highly competitive and Helbor may decrease its market share under certain circumstances.
The real estate industry in Brazil is subject to extensive regulation.
Increases in existing tax rates or the creation of new taxes could adversely affect Helbor.
Risks Related to Brazil
The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy. This influence, as well as Brazilian political and economic conditions, could adversely affect the Company’s and the trading price of its common shares.
Inflation, and government efforts to combat inflation, has adversely affected the Brazilian economy and the Brazilian securities market. In the future, high inflation rates may adversely affect Helbor.
Exchange rate instability may adversely affect the Company’s results of operations, financial condition and the trading price of its common shares.
Economic developments and the perception of risk in other countries, particularly in emerging market countries, may adversely affect the trading price of securities issued by Brazilian companies, including the Company’s common shares.
Risks Related to Helbor Shares
The sale of a significant number of the Company’s common shares after the conclusion of this offering or the perception that such sales could occur, may adversely affect the trading price of Helbor’s common shares and/or the perception of risk among investors.
The Company may need additional funds in the future and may issue additional securities, which may result in a dilution of shareholders’ interest in its common shares.
Helbor’s shareholders may not be paid dividends or interest on shareholders’ equity.
The interests of the Company’s controlling shareholders may conflict with interests of its other shareholders.