Risks related to the securities market

Market risk
 
Shareholders of INVL Baltic Farmland bear the risk of incurring losses due to adverse changes in the market price of the shares. A drop in the stock price may be caused by negative changes in the value of the company’s assets and profitability as well as by general stock market trends in the region and the world.
 
Trading of shares of INVL Baltic Farmland may be affected by comments of brokers and analysts and published independent analyses of the company and its activities. Unfavourable opinions of analysts regarding the outlook for the shares of INVL Baltic Farmland may adversely affect the market price of the shares. Non-professional investors assessing the shares are advised to seek the assistance of public trading intermediaries or other experts in this field.
 
Liquidity risk
 
If demand for shares decreases or they are delisted from the stock exchange, investors will face a problem of realizing their shares. If the financial situation of INVL Baltic Farmland deteriorates, demand for the company's shares may drop, which would lead to a fall in the share price.
 
Dividend payment risk
 
Payment of dividends to the shareholders of INVL Baltic Farmland is not guaranteed and will depend on the company’s profitability, investment plans and overall financial situation.
 
Tax and legal risk
 
Changes in equity-related legislation or state tax policy may affect the attractiveness of the shares of INVL Baltic Farmland. This may reduce the liquidity and/or price of the shares.
 
Inflation risk
 
When inflation increases, the risk arises that the stock price change may not offset the current rate of inflation. In this case, the real returns from capital gain on market shares for traders may be less than expected.