PF Finans / Clarinova

Risk factors

Risks relating to the Company

All investment in Bonds and financial assets involves a degree of risk. The financial performance of Clarinova Ltd and the risks associated with the business are important when making a decision on whether to invest in the Bonds. A number of risk factors could influence the Company’s activities and financial performance (including those beyond Calrinova’s control) and ultimately Clarinovas’s ability to make interest payments and payments of principal on final maturity. The risk factors and circumstances considered to be of material significance to the Company’s future acttivities are described below, without being ranked in order of importance and without any claim being made that the list is exhaustive. The risks below are not the only risks faced by Clarinova and its bondholders. Further risks that at present are not known to Clarinova may have a material impact on the Company’s operations, financial position and results. In addition to the risk factors indicated below, the reader should also pay close attention to the other information in this Prospectus, along with a general analysis of the surrounding world, before deciding to invest in the Bonds.

Financial risks and risks relating to the current macroeconomic environment

The global financial turmoil has significantly affected the world economy. While governments has introduced a range of stabilization measures aimed at providing liquidity to banks, financial instituions and companies, there continues to be uncertainty regarding the access to capital and cost of capital in the Market for the Company and its counterparties. There is still an uncertainty of the ability for banks and insurance companies to fulfill their obligations.

The Company’s performance depends on its current management team

The Company is dependent on the efficient functioning of its management structure. In addition, the Company’s operations rely on a senior management team for the implementation of its strategy and the operation of its day-to-day activities. The Compay’s performance depends to a significant extent on its ability to attract and retain such highly qualified and skilled partners, and in particular with experience in the financial markets. The loss of any key person or the inability to recruit appropriate personnel could have a negative impact on the Company’s performance. No assurance can be given that key senior executives or senior executives at the operational level will remain with the Company. Any inability to attract and retain the Company’s key employees and managers and other professional personnel could have a material adverse effect on the Company’s business, financial condition and operational results.

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