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 SLC Agrícola’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. SLC Agrícola’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 Relating to SLC Agrícola’s Business
- Risks Relating to Brazil
- Risks Related to SLC Agrícola’s Common Shares
1) Risks Relating to SLC Agrícola’s Business
- Weather conditions may negatively afect the production and the results of operations.
- International trade dependency, fluctuations in market prices for the products and fluctuations in the value of the real in relation to the U.S. dolar could adversely affect the company’s financial conditions and results of operations.
- Plagues or diseases may destroy the crops and affect the results of operations and company’s reputation.
- The company’s products are sold to a few customers with strong bargaining power.
- The company may experience difficulties implementing our investment projects, which may affect our growth.
- SCL Agrícola cannot assure you that the company we will be able to obtain efficient transportation, warehousing and processing capabilities to ensure the distribution of the production in the principal markets on cost-effective terms or at all.
- The company’s risk control policy may not sufficiently cover our risks.
- Agriculture is a seasonal business, which may have an adverse affect on the revenues and the results of operations.
- The company is subject to extensive environmental regulation;
- The company may experience fires, natural disasters or other events that could affect the farms, production and our results.
2) Risks Relating to Brazil
- The Brazilian government exercises significant influence on the Brazilian economy. This influence, as well as Brazilian political and economic conditions, may have an adverse effect on SLC Agricola’s activities, on the results of operations or on the market price of the company’s common shares.
- Inflation and government measures to curb inflation, including interest rate increases, could contribute to economic uncertainty in Brazil, and could cause a material adverse effect on company’s financial condition, our results of operations and the market price of the company’s common shares.
- The volatility of the real in relation to the U.S. dollar could have a material adverse effect on SLC Agrícola and on the market price of the company’s common shares.
- Interest rate fluctuations may have an adverse effect on our business and on the market price of the company’s common shares.
- Events and the perception of risks in other countries, particularly in emerging market countries, may have an adverse efect on the market price of Brazilian securities, including the company’s common shares.
3) Risks Related to SLC Agrícola’s Common Shares
- An active and liquid trading market for the company’s common shares may not develop, limiting the ability of investors to sell the company’s common share
- Sale of a substantial number of the company’s common shares after the offering may adversely affect the price of the company’s common shares, and the issuance of new shares could dilute your participation
- SLC Agrícola chooses not to pay dividends to the company’s shareholders.
- SLC Agrícola may raise additional capital in the future by issuing common shares, which may result in dilution of the interests of our shareholders
- The company will continue to be controlled by our present controlling shareholders, who are members of a family whose interests may conflict with those of the company’s other shareholders.
- Provisions in the company’s bylaws may discourage, delay or make more difficult a change of the company’s control or the approval of transactions that might otherwise be in the best interests of the company’s shareholders