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Risk

Investments do not only offer the opportunity to increase the invested capital, but these opportunities are accompanied by the respective risks of loss as well. Often, everyone seems to believe that an investment is lucrative, but even if all the criteria of a good investment seem to be met, it can still happen that this investment is not successful anyway and that the invested capital is lost.

Please also note that all of our publications (websites, brochures, hand-outs, fliers, and other documents) do, in fact, contain information that we have compiled with the utmost care. In spite of that, however, we cannot warrant its accuracy and completeness – just as little as we can make binding statements and forecasts about the development of stock prices, IPOs, or other developments. We cannot warrant the accuracy of the latest projections in the future either.

Some or all of the information and reports that we provide were made available to us by third parties. Even though we are sure that our sources are reliable and trustworthy, we cannot warrant the scope, the precision, the completeness, and the timeliness of the information transfer and/or provision.

Our projections do not warrant or provide a completely reliable guarantee for the development of shares because Blackpool Inc. does not engage in investment consulting, brokerage, or the analysis of companies and/or the success of their holdings and/or advice (private) investors on investment decisions.

We are required to inform you that any type of investment is always associated with risk which, even if the Company in which shares are held develops positively, can have a negative effect on the investment due to geopolitical and global economic or climate changes up to a total loss.

1. References to the Offering of Stock and Other Shares to Qualified Investors

The Company’s shares are not suitable for every type of investor. In general, Shares are not sold to so-called “unqualified investors.” Only those who define themselves as “qualified investors” and provide the respective information and confirm their comprehensive investment experience may purchase shares. In addition, persons may only buy Blackpool Inc. shares in jurisdictions in which the purchasing of the offered shares is permitted by law and not prohibited.

Persons that are affected by prohibitions in their home countries or countries of residence are expressly forbidden from signing this Agreement.

2. No Public Offer and Advertising

The information published in this statement (as well as in other publications – print and online) shall not constitute an offer or an advertisement for the sale of stock and/or other securities from the portfolio of Blackpool Inc.

The same shall apply if the person making the offer and/or engaging in the advertising does not have the respective qualification to do so or if it is unlawful to make such an offer or provide such advertising to certain persons. In such a case, however, it is important to note that Blackpool Inc. cannot and shall not assume any responsibility for the activities of third parties. The advisor liability of cooperation partners of Blackpool Inc. have with regard to the clients they advise shall, of course, remain in effect.

3. No Investment Consulting

All of the information about the Company was compiled and published to the best of our knowledge and belief. Therefore, neither we nor third parties such as external journalists and/or media partners or the like can assume liability for this information.

Nobody can assume explicit or implicit warranty for the accuracy, suitability, or completeness of the information provided either.

In general, it is the Company that is issuing the stocks, bonds, or other shares that is responsible for the truthful and complete disclosure of information. A responsible member of the issuing company must report the issue to a supervisory authority to enable said authority to decide whether, and if yes, to what extent, issued shares or financial products require regulation.

The information in this statement shall neither constitute investment advice nor a tax or legal consultation or help or assistance of any other type or kind. Please note that some of the information about the shares may be subject to access restrictions. The restrictions are noted in the references listed here. In the event of open questions or ambiguities, please obtain the neutral advice of a legal, investment, or tax consultant.

4.Private Placement Based on Rule 506 (c) of Regulation D of the US Securities and Exchange Commission

Special details must be taken into consideration when the planned investment pertains to a company that issues its shares within the context of a private placement based on Rule 506 (c) of Regulation D of the US Securities and Exchange Commission “SEC.”

In the event of such a placement, the SEC almost completely exempts the issuing companies from their publication and disclosure obligations. This means, however, that in spite of the formal exemption from certain publications, the company must be able to fully inform interested potential investors and existing investors about the operating activities and the financial situation in just as much detail as a company that is not exempt from the exemption provision of Rule 506 (c) of Regulation D would.

These circumstances do not, however, exempt the companies from providing investors with all information that fully explain the activities and the financial situation of the company and disclose all the details of the balance sheet.

The financial statements must be audited by an independent tax advisor or auditor. It is not Blackpool Inc., however, who is responsible for preparing such balance sheets and/or accounting records, but the issuer of the share, i.e., the Company and its governing bodies.

For reasons of transparency and investor protection, however, the specific financial accounting requirements are subject to the same requirements that apply to companies that place their shares in accordance with the so-called Rule 505. For more information on this issue, please refer to the website. You may also obtain further details from the websites of the US Securities and Exchange Commission SEC under http://www.sec.gov/answers/rule505.htm.

If interested, any investor may request the complete business plan, the budget, balance sheet, and a host of other documents free of charge from the Company by contacting the Company in the manner outlined in the Agreement. The Company’s website provides interested investors around the clock with a brief overview which is intended as initial, anonymous, and free information.

Interested parties should carefully read the information contained therein before making an investment decision.

5. Risks Inherent to Not Yet Publicly Listed Stock

Stock and other shares are generally listed on stock exchanges in the regulated market (“official trading”) or in the unregulated market (also referred to as “free market,” “ink sheets,” “bulletin board,” or “open market”).

This means that buyers and sellers can buy and sell their shares at a transparent rate and from a regulated stock exchange or MT(https://de.wikipedia.org/wiki/Multilaterales_Handelssystem).

An investment in stocks from a company that is not yet listed on a stock exchange and that does not yet participate in OTC trading therefore means that the buyer and seller do not always have transparent purchase and/or sales prices for their shares.

Instead, an investor, maybe after the expiry of a potential holding period, may freely transfer and sell the shares, but must find the buyer himself (or with the help of a commissioned broker).

Awareness of the qualifications for the trade with premarket shares that are not listed on a stock exchange is important not only for professional traders, but wealthy private investors as well.

6. Risks Associated with the Purchase of Shares as an Investment

There are also risks associated with stocks and shares due to the fact that the economy and the financial markets are subject to certain fluctuations. Such fluctuations cause exchange rates to rise and fall, and therefore lead to profits or losses.

It is important to differentiate between so-called “general” and “company-specific risks” when it comes to risks, exchange rate fluctuations, or other negative events.
The term “general” risk comprises, for example, the exchange rate differences that can be attributed to the overall economic development. The price of a share can easily drop at a stock exchange without anything having changed in the financial and commercial situation of a company. This can even happen if the index, or respectively the indices, in which the company is listed increase disproportionally. Such developments may be caused by various complex economic processes, political developments, or even certain speculation instruments (short sales and the like). The reasons may be very complex, but also very simple and trivial such as a revolution or a natural disaster.

The term “company-specific” risk therefore pertains to areas that may directly or indirectly fall under the control and/or responsibility of the company and its management team.

In addition to the risks described above, however, any investor takes other risks as well. These include, for example, general economic risks which may, for example, influence all national and international business processes. It is therefore possible that there may be prolonged high but also prolonged low phases, which can sometimes last several years.

Then there are also risks that relate to macroeconomic factors such as the unemployment rate in a country, the overall national and international order book, and the development of the purchasing power. National and international interest levels as well as the associated decisions by the central banks of large and economically strong countries play a role as well.

This must be noted in particular if a commitment is to be carried out outside the own jurisdiction or, respectively, the own currency area. This is due to the fact that investments in other countries are not subject to laws or regulations that one is familiar with, but to the terms specific to the respective country. This creates a so-called “country risk” which, put simply, bears the risk that a company is unable to execute its operational business as planned due to country-specific developments or laws and that it therefore may become unable to make dividend, interest, or principal payments.

The economic or political instability of a country influences the risk as well. A country’s operating business may significantly fall short of the desired, projected numbers due to social unrest, revolutions, political upheavals, economic sanctions from other countries, and other similar developments.

In addition, investments in other countries are generally settled in a foreign currency as well. It is important to be familiar with this currency and to take it into consideration in one’s decision. This means that unfavorable exchange rates may negatively influence the value of a share or a real property. Conversely, however, it is possible as well that such a currency fluctuation may have a positive influence on the value of an investment.

Directly associated with the currency risks are the so-called “inflation risks.” These inflationary developments (https://de.wikipedia.org/wiki/Inflation) may have a significant influence on the situation of a currency and therefore an entire country or several countries.

The risk of inflation, or respectively the loss of an economic system’s purchasing power, may decrease the value of an asset as well as the real economic earnings and profits of an investment or even wipe it out completely. Often, no or smaller dividend disbursements are typical symptoms of inflationary tendencies. Within the context of these tendencies, it is quite possible that a company which has paid high dividends to its shareholders for many years or even decades is suddenly no longer able to do so and/or may actually decide to reinvest the profits into the company.

Frequently, such inflation cycles lead to recessions as well, which may cause a company to become insolvent. Since a shareholder is a co-owner of a company, this shareholder is also a co-owner of the respective company when the company undergoes a negative development. If a company in which the shareholder has invested develops differently than expected, the worst-case scenario is insolvency. In the event of an insolvency, the claims of shares are generally “subordinated.” This means that the open receivables are only services after all other creditors’ claims have been satisfied.

The stock of a company does not, however, have to lose its value and become worthless in order to not be able to cover a short-term need for liquidity the respective shareholder may have. It is not uncommon that the customary trading with the respective share does not function as quickly and/or that larger rate decreases must be accepted in order to be able to sell the stock, when a so-called “lack of liquidity” (https://en.wikipedia.org/wiki/Liquidity_crisis or respectively https://en.wikipedia.org/wiki/Market_liquidity) occurs. Under some circumstances, this situation may even mean that the stock cannot be sold at all.

This may lead to particular disadvantages when an investor acquired funds by borrowing against the existing stock portfolio which are then invested in a paper. This causes the risk in the event of a loss to increase disproportionately because instruments financed by credit comprise additional details such as the reimbursement costs for the loan that was taken out, loan costs, and/or processing fees by the bank/the broker.

Vers. 5/05/2017

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Blackpool Inc. </ Strong>
745 Fifth Avenue
New York

NY 10151, USA

 

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