Financing risk. The Group is deemed to be sufficiently funded. However, additional capital needs, due to for example unforeseen costs and/or larger capital expenditures than expected, cannot be ruled out. There is a risk that the Group cannot satisfy such additional capital need on favorable terms, or at all, which could have an adverse effect on the Group’s business financial condition, operations and earnings.
Financing risk. The Company currently does not have enough working capital to satisfy its capital needs. The Company is dependent upon investors to fund its ongoing operations, and cannot be certain that future financing will be available to it on acceptable terms when it needs it. The Company can give no assurances that it will be able to raise adequate funding to reach cash flow break even. If the Company is unable to obtain financing to meet its needs, the Subscriber may lose of its investment.
Financing risk. Moderate
Financing risk. The Group is deemed to be sufficiently funded following the completion of the Recent Equity Issue. However, additional capital needs, due to for example unforeseen costs and/or larger capital expenditures than expected, cannot be ruled out. There is a risk that the Group cannot satisfy such additional capital need on favourable terms, or at all, which could have an adverse effect on the Group’s business, financial condition and equity returns. As further described in this Company Description, Closing of the acquisition of the Target Company owning a part of the property Kävlinge Sandhammaren 1 is intended to occur during Q1 2017. The credit approval from the bank, and therefore the commitments under the Debt Facility, is only valid for six months. This means that the Company will have to apply for a new credit approval with the bank before the relevant Closing date of the acquisition of the Target Company owning part of the property Kävlinge Sandhammaren 1. There is a risk that the bank granting the Debt Facility, or any other bank if the Company has applied for funding elsewhere, will not grant a new credit approval if, inter alia, the property has lost value or the general terms of the debt market has adversely changed. The Share Purchase Agreement in relation to the Target Company owning part of the property Kävlinge Sandhammaren 1 contains a clause stating that committed finance is a condition for Closing (i.e. finance out clause). If the Company is unable to renew its credit approval, both parties have an individual right to cancel the relevant Share Purchase Agreement. Should the Midroc Vendor exercise its right to cancel the relevant Share Purchase Agreement and Closing of the relevant acquisition does therefore not occur there is a risk that the Group's financial condition and equity returns will be adversely affected. Furthermore, in the event that the Company is unable to receive a new credit approval from the bank granting the Debt Facility, and both the Company and the relevant Midroc Vendor are seeking to complete the relevant acquisition, the Company will have to apply for funding from another bank. There is a risk that such other bank will grant funding on less favourable terms than the bank granting the Debt Facility, or not grant funding at all, which could adversely affect the Group´s financial condition, cash flow and equity returns.
Financing risk. CHGP / the Purchaser will be seeking external financing to partially fund the Proposed Acquisitions. Its ability to arrange for external financing and the cost of such financing are dependent on numerous factors, including general economic and capital market conditions, interest rates, credit availability from banks or other lenders, or any restrictions imposed by the Government as well as the political, social and economic conditions in Malaysia. The Group may also be exposed to fluctuations in interest rate movements. Any future significant fluctuation of interest rates could have an effect on the Group’s cash flows and profitability. Nevertheless, CHGP will endeavor to manage its cash flow position and funding requirements prudently, to address the risk.
Financing risk. A REIT may not be able to source and secure adequate financing to complete a development project. Increase in interest rates and liquidity shortage are examples of other financing risks that a REIT may be exposed to. A REIT may encounter delays in obtaining all necessary building approvals for development projects. Cooperation with other parties to carry out development projects may involve various counterparty risks such as the risk of default by contractors in performing their obligations. Market environment may change between the commencement of the property development project and by the time when the project is completed. A REIT may be subject to various market risks such as fluctuations in rental yield and property value. A REIT may be involved in disputes with parties in development projects which may lead to construction claims and litigations. In addition, a REIT may need to revise the original property development plan as local legislation, rules and regulations relating to property development may change, leading to extra cost and time needed for completion. Investment involves risks. Where a REIT is to invest in financial instruments, it may be subject to the following risks associated with investment in financial instruments: The value of stocks will fluctuate in response to the activities and results of individual companies or as a result of general market and economic conditions.
Financing risk. As mentioned in Section 3.6 herein, the associated development costs to be incurred for the Project shall be funded by SESB through a combination of internally generated funds by the Project, external bank borrowings and/or shareholders’ advances. Incurring additional bank borrowings will correspondingly increase the borrowing and gearing level of the Group. It would expose the Group to interest rate and debt servicing risks while any utilisation of internal funds is expected to result in a reduction of funds available for working capital purposes, which may have an adverse effect on the Group’s cash flow position. Nevertheless, the Board will endeavour to manage its cash flow position and funding requirements prudently to address the above risks.
Financing risk. LYC Medicare may finance its subsequent funding and capital requirements, if required at later stage, through internally generated funds and/ or external borrowings, of which the exact breakdown of funding can only be determined at a later stage. Incurring any additional bank borrowings to finance the said funding and capital requirements will expose LYC Group to interest rate and debt servicing risks whilst any utilisation of internally generated funds may result in a reduction of funds available for the Group's working capital purpose.
Financing risk. Sentoria intends to finance the Proposals and the associated development costs through a mixture of internally generate funds and/or external bank borrowings. Taking up additional bank borrowings would expose the Group to interest rate and debt servicing risks while any utilization of internal funds is expected to result in a reduction of funds available for working capital purposes, which may have an adverse effect on the Group’s cash flow position. The Board will endeavor to manage its cash flow position and funding requirements prudently, to address the aforementioned risks.
Financing risk. The Company might not obtain sufficient financing to meet its operating needs and fulfill its plans, in which case it will cease operating and investors will lose the entirety of their investment. If the Company cannot raise those funds for whatever reason, including reasons relating to the Company itself or to the broader economy, it may not have sufficient funds to operate and your investment may be worthless.
