LEGAL NOTES AND RISK FACTORS
Cautionary Statement Regarding Forward-Looking Information
Risk Factors
Ideiasnet investor relations website includes forward-looking statements that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of the Company's management, and on information currently available to them. Forward-looking statements include statements regarding Ideiasnet directors or executive officers´ intents, beliefs or current expectations with respect to, but not limited to:
. the direction of future operations of the Company and companies in which it has equity participation;
. the implementation of operating strategies, including existing or potential growth plans;
. the factors or trends affecting the business of Ideiasnet and companies in which it has equity participation, market share, prospects, financial condition or results of its operations;
. general economic, political and business conditions in Brazil, including rates of economic growth and inflation;
. changes in market prices and competitive conditions;
. Company's ability to continue to develop new related services and products;
. Company's continued maintenance of its relationships with the partners of companies in which it has equity participation;
. other risks and uncertainties detailed throughout this website, including the risk factors set forth below.
Investors should understand that the above-mentioned factors, in addition to others discussed in this investor relations website, among others, could affect our future results and could cause results to differ materially from those expressed in the forward-looking statements we make in this website or files herein posted.
Forward-looking statements also include information concerning our possible or assumed future results of operations set forth under several sections in this investor relations website, as well as statements preceded by, followed by, or that include the words ''believes,'' ''may,'' ''continues,'' ''expects,'' ''anticipates,'' ''intends,'' ''plans,'' ''estimates'' or similar expressions.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. Our future business, financial condition, results of operations, prospects, strategies, market share and shareholder values may differ materially from those expressed in or suggested by these forward-looking statements. Many of the factors that will determine these results and values are beyond our ability to control or predict.
Investors are cautioned not to put undue reliance on any forward-looking statements.
Risk Factors
An investment in securities involves a high degree of risk. You should carefully consider the following factors in addition to the other information in this investor relations website before investing in Ideiasnet common shares. In general, investing in the securities of issuers in emerging market countries, such as Brazil, involves a higher degree of risk than investing in the securities of U.S. issuers or issuers in other countries with highly developed capital markets. Our business, financial condition, results of operations and prospects may be materially adversely affected by any of these risks. The market price of Ideiasnet common shares may decrease due to any of these risks, and you may lose all or part of your investment.
The risks briefly described below are those that the Company currently believes most likely may materially affect its performance.
1) Risks Relating to Brazil
. The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy. Brazilian political and economic conditions have a direct impact on Ideiasnet business, its financial condition, results of operations and prospects and the market price of its common shares.
. Inflation and certain government measures to curb inflation may have adverse effects on the Brazilian economy, the Brazilian securities market, Ideiasnet business, financial condition, results of operations and prospects and the market price of its common shares.
. Exchange rate instability may adversely affect Ideiasnet business, financial condition, results of operations and prospects and the market price of its common shares in U.S. dollar terms.
. Developments and the perception of risks in other countries, especially emerging market countries, may adversely affect the Brazilian economy, our business, financial condition, results of operations and prospects and the market price of Brazilian securities, including the Company's common shares.
2) Risks Relating to Ideiasnet Business
. Ideiasnet business model isn't completely proved in Brazil yet.
. The Company may face competition from other potential investors in Internet companies.
. The Company may not have opportunity to acquire other companies.
. Ideiasnet may not be able to obtain enough resources to fund its growth process.
. Security concerns in confidential transactions and transmissions over the Internet may impact Ideiasnet business model.
. The Company has not posted positive net income yet and it can continue to post net losses for an uncertain period of time.
. The Company's joint-ventures, acquisitions and alliances may result in negative impact on its operating and financial performance, and also on its share price.
. Ideiasnet also participates in non-public companies, whose results may not be audited.
. The Company may be subject to governmental regulation in excess and to legal uncertainties which impact Internet businesses and its activities in particular.
. Ideiasnet and its invested companies have established, or may establish, companies in other countries and therefore they will be subject to risks related to foreign investment.
. The Company success and its investments are intimately related to the development of the telecom and Internet sectors.
. Competition in the markets of business-to-business and business-to-consumer, where Ideiasnet and its invested companies operate, are expected to intensify in the future.
. Certain Ideiasnet invested companies may not succeed in protecting its trademarks and intellectual property and may infringe thirty party rights.
. Ideiasnet and its invested companies may not attract a loyal user base for their websites.
3) Risks Relating to Ideiasnet Common Shares
. An active and liquid market for Ideiasnet common shares may not develop, which would limit your ability to resell such common shares.
. Sales of a substantial number of Ideiasnet common shares may adversely affect the price of those common shares, and the issuance of new shares will dilute all other holdings.
. Ideiasnet By-laws may prevent or reduce the possibility of a tender offer or an attempt to cause a change in control of the Company, even though a tender offer or a change in control might be in the best interests of our shareholders.
. The Brazilian government may impose exchange controls and significant restrictions on remittances of reais abroad, which could adversely affect your ability to convert and remit dividends, distributions or the proceeds from the sale of Ideiasnet common shares and could reduce the market price of its common shares.
. Ideiasnet will continue to be controlled by its controlling shareholders, whose interests may differ from those of the
Company's other shareholders.
. Ideiasnet may need additional capital in the future, which may not be available to the Company. The raising of additional capital may dilute your ownership in us.
. It is expected that non-corporate United States shareholders will be ineligible for the favorable United States federal income tax treatment that applies to dividend income received from certain corporations.
. Changes in Brazilian tax laws may have an adverse impact on the taxes applicable to a disposition of Ideiasnet common shares.
. The protections afforded to minority shareholders in Brazil are different from those in the United States, and may be more difficult to enforce.
