Common use of Potential Loss of Investment Clause in Contracts

Potential Loss of Investment. Lender is aware and acknowledges that (a) the Company has a limited operating history, and there is a high degree of risk that the Company will be unable to execute its business strategy successfully; (b) the Notes and the shares of Common Stock issuable on conversion of the Notes (collectively, the “Company Securities”) involve a substantial degree of risk of loss of its entire investment and that there is no government or other insurance covering the Securities; (c) Lender, in purchasing the Notes, is relying solely upon the advice of such Lender’s advisors (including as to legal, financial and tax matters) with respect to purchasing the Notes; and (d) because there are substantial restrictions on the transferability of the Company Securities it may not be possible for such Lender to liquidate its investment readily. Lender further acknowledges that it has been advised to consult its own legal advisors with respect to the execution, delivery and performance by it of this Agreement and the transactions contemplated by this Agreement, including trading in the Company Securities, and with respect to the hold periods imposed by applicable securities laws, and acknowledges that no representation has been made by the Company respecting the applicable hold periods imposed by applicable securities laws or other resale restrictions applicable to such securities which restrict the ability of such Lender to resell such securities, that such Lender is solely responsible to find out what these resale restrictions are, that such Lender is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions.

Appears in 3 contracts

Samples: Note Purchase Agreement (Orbsat Corp), Note Purchase Agreement (Orbsat Corp), Note Purchase Agreement (Orbital Tracking Corp.)

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Potential Loss of Investment. Lender Such Seller is aware and acknowledges that (a) the Company Purchaser has a limited operating history, and there is a high degree of risk that the Company Purchaser will be unable to execute its business strategy successfully; (b) the Notes and the shares of Common Stock issuable on conversion of the Notes (collectively, the “Company Securities”) Harvest Shares will involve a substantial degree of risk of loss of its entire investment and that there is no government or other insurance covering the Securitiesinvestment; (c) Lender, in purchasing the Notes, such Seller is relying solely upon the advice of such LenderSeller’s advisors (including as to legal, financial and tax matters) with respect to purchasing acquiring the Notes; and (d) because there are substantial restrictions on the transferability of the Company Securities it may not be possible for such Lender to liquidate its investment readilyHarvest Shares. Lender Such Seller further acknowledges that it has been advised to consult its own legal advisors with respect to the execution, delivery and performance by it of this Agreement and the transactions contemplated by this Agreement, including trading in the Company Securities, and with respect to the hold periods imposed by applicable securities laws, and acknowledges that no representation has been made by the Company Purchaser respecting the applicable hold periods imposed by applicable securities laws or other resale restrictions applicable to such securities the Harvest Shares which restrict the ability of such Lender Seller to resell such securitiesshares, that such Lender Seller is solely responsible to find out what these resale restrictions are, that such Lender is Seller will be solely responsible (and the Company Purchaser is not in any way responsible) for compliance with applicable resale restrictions.

Appears in 1 contract

Samples: Contribution and Exchange Agreement (Harvest Health & Recreation Inc.)

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