Risk Factors

 

Potential investors, before making any decision, should carefully consider all the information available on this website, especially the risks mentioned below. The business, financial situation, and results of operations of RNI Negócios Imobiliários may be adversely affected by any of these incisions, and consequently, negatively impact the securities issued by the Company. The risks described below are those already known by RNI Negócios Imobiliários, and the possibility of these affecting the Company significantly is considered. Additional risks not known by RNI Negócios Imobiliários or deemed irrelevant are also capable of affecting its business.

 

1. Risks Related to RNI Negócios Imobiliários

 

• The Company may not be able to fully implement its business strategy, including expansion into a new segment;

• Insufficient resources for obtaining financing or increases in interest rates may impair the ability, as well as the willingness of potential real estate buyers to finance their property acquisitions;

• The activities of RNI Negócios Imobiliários depend on the availability of financing to meet its working capital needs and resources for land acquisition, as well as to finance real estate acquisitions by potential property buyers;

• Breakdowns in deadlines, increases in interest rates between fundraising and the loans that the company grants to its clients may adversely affect its cash flow and results;

• RNI Negócios Imobiliários is subject to risks typically associated with lending;

• Losing key management members of the company may have a significant adverse effect on its financial position and operational results. • RNI Negócios Imobiliários is a company whose earnings depend on the results of its subsidiaries, which cannot be assured will be made available to them.

 

2. Risks Related to the Real Estate Sector

 

• The Federal Government, the Brazilian economic and political scenario, exert significant influence on the Brazilian economy and can cause a considerable adverse effect on RNI’s activities and the market price of its shares;

• Inflation and the Federal Government’s efforts to combat it can significantly contribute to economic uncertainty in Brazil, capable of harming its activities and the market price of its shares;

• Currency instability can harm the Brazilian economy, as well as the market price of RNI Negócios Imobiliários’ shares;

• Some events, as well as the perception of risks in other countries, especially those with emerging economies, can harm the market price of Brazilian securities, including the company’s shares.

 

3. Risks Related to Brazil

 

• The Federal Government exerts significant influence on the Brazilian economy, as well as the Brazilian economic and political scenario, which can cause a relevant adverse effect on the real estate market, reflecting on RNI’s activities and the market price of its shares;

• Inflation and the Federal Government’s efforts to combat it can significantly contribute to economic uncertainty in Brazil, thereby harming its activities and the market price of its shares;

• Currency instability can harm the Brazilian economy, as well as the market price of RNI’s shares;

• Extraordinary events and the perception of risks in countries with emerging economies can harm the market price of Brazilian securities, including the company’s shares.

 

4. Risks Related to Company Shares

 

• The volatility and lack of liquidity in the Brazilian securities market may substantially limit investors’ ability to sell RNI Negócios Imobiliários’ shares at the price and time they desire;

• An active and liquid market for the company’s shares may not develop;

• The sale of significant quantities of RNI Negócios Imobiliários’ shares may cause the price to decrease. • The interests of controlling shareholders may conflict with the interests of investors.