All investors investing in property development investments presented by QB Investing (the “QB Investments”) should read carefully the following warnings before making any investment.
QB Investing does not, expressly or impliedly, directly or indirectly, guarantee or make any representation or warranty concerning the completeness, adequacy or accuracy of this risk disclosures notice. This brief statement does not disclose all of the risks and other significant aspects of investing. You should, therefore, carefully study and consider the merits and demerits and take independent professional advice before becoming involved in investment transactions. You should undertake transactions only if you understand the nature of the contractual relationship into which you are entering and the extent of your exposure to risk, keeping in mind your financial resources.
QB Investing does not make investment recommendations to you. No communications from QB Investing, through this website or any other medium, should be construed as an investment recommendation. If you have any doubt about the suitability of any investment opportunity, you should seek advice from an appropriately qualified professional.
A decision to invest is a personal decision by you and that no responsibility for the consequences of that decision is accepted by QB Investing or by any of its directors, agents, employees or other members.
The developers that we work with are private businesses or individuals. When considering investing, you must take into account the risks inherent in the transaction.
To invest in QB Investments you need to understand the following:
LOSING ALL OF YOUR INVESTMENT
Investments carry high risks as well as the possibility of high rewards. Accordingly, each investor should consider very carefully whether such investments are suitable in the light of personal circumstances and commitments and the financial resources available to them. QB Investing does not promise any return on investment or that the value of any investment will be maintained. Engaging in any investment activity may expose you to a significant risk of losing all of your investment or delays in receiving a return.
THE NEED FOR DIVERSIFICATION
Diversification by spreading your money across multiple investments will reduce risk. Investors should only invest a proportion of their available investment funds due to the high risks involved.
The value of an investment and the income from it can fall as well as rise and investors may not get back the amount originally invested. Therefore, you should only make investments which you can afford to lose without having any significant impact on your overall financial position or commitments. Taxation levels, bases and reliefs may change if the law changes and independent advice should be sought. We will not accept any liability for any legal, investment or tax issues in connection with any investment you decide to make or from the information we have provided you.
Many QB Investments offer Ordinary Shares, which include pre-emption rights that protect an investor from dilution. Companies must give shareholders the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Dilution affects shareholders who do not buy any of the new shares being issued. As a result an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’. This has an effect on a number of things, including voting, dividends and the value of shareholding.
NO ESTABLISHED MARKET - LACK OF LIQUIDITY
As an investor you should be aware that no established market exists for the trading of shares in private companies, and such shares are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.
POSSIBILITY OF DILUTION
Many QB Investments offer Ordinary Shares, which include pre-emption rights that protect an investor from dilution. Companies must give shareholders the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Dilution affects shareholders who do not buy any of the new shares being issued. As a result an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’. This has an effect on a number of things, including voting, dividends and value of shareholding.
We do not provide any advice related to lending decisions you make. Sometimes we do provide factual information and information about transaction procedures, potential risks involved and how those risks may be minimised, but any decisions made to lend must be yours based on your own assessment of risk associated with the loan you choose.
- The developers that we work with are private Businesses or individuals. When considering investing, you must take into account the risks inherent in the transaction.
- By lending on QB Investments, your capital is at risk and there is a risk that you may not get back what you put in. You should not invest more money than you can afford to lose without altering your standard of living.
- Due to nature of the investment the investor will be unable to cancel his loan or ask for the return of his capital.
- Where you are considering lending to an unlisted company, partnership or LLP (whether newly formed or well established) or an individual, bear in mind the risk that the developer may be unable to meet its repayment obligations.
- Money which is lent to a developer may be unsecured. Therefore in case of failure of the developer to repay debt, the investor will rank equally with all other unsecured creditors. In the event any form of security is offered to the investor for the loan (such as a company debenture), investors should take sensible steps to verify the enforceability of the security and to determine for themselves whether it provides adequate security, taking independent legal advice.
- Loans made to unlisted companies, partnerships, LLPs and sole traders are not readily realisable like other investments in listed companies where a readily available secondary market exists for debt. Therefore before making any lending decisions you should assess your future financial needs as you may not be able to find an immediate buyer for your loan in unlisted companies.
- When lending money to a developer, the investor will have no control over the day to day operations of the developer.
- At the time of lending to any business or individual, you should review the financial projections prepared by the developer. We do not provide any advice to developers and they are solely responsible for the information provided in documents distributed by us. We will provide updates on the financial position and project status or other relevant information related to the developer’s businesses however this will be dependent on receiving the same from the developer. Because unlisted companies and LLPs may have minimal statutory obligations to publish their financial information, we cannot guarantee we will be able to update you with the desired information.
- At the time of making any loan you can review the Loan Agreement and associated documents. We urge you to read these terms and conditions carefully and seek independent legal advice on their meaning and effect. We will not be liable to you for any failure by the developer to honour rights attaching to loans.
- A listed company is required to comply with strict corporate governance and disclosure requirements as stipulated by the Exchanges on which their securities are listed or other regulations. However, in the case of an unlisted company, there are no statutory requirements to make any disclosure in case of any change in control or significant change in operational activities. We cannot guarantee and therefore will not be liable to you for any failure to keep you informed of any such matters.
- Investors should consider whether the developer’s application sufficiently describes the various risks and conflicts of interest relating to the applicant business, the application and developer’s operations. Although we will provide guidance to businesses and individuals to assist them in preparing full and fair disclosure of all risks in their application, we have no ability to assess whether all such risks have been accurately described or disclosed and will not have any responsibility for any failure to do so. Before making any investment or lending decisions, you should fully assess the risks involved and should query any matters where you feel inadequate risk disclosures have been made.