Risk summary (simplified)
Investing in growth companies through bonds is very high risk. You can lose part or all of the money you invest.
The following text is a short and strongly simplified overview of selected risks of an investment in HEROSAN.
It is not complete and does not replace the detailed description of risks in the Key Investment Information Sheet (KIIS).
Before you invest, you must read the KIIS in full and with care and check whether you can understand and bear all of the risks described there.
If there are any differences between this summary and the KIIS, only the KIIS is legally binding.
Key risk areas (short overview)
- Business, market and management risk
HEROSAN is in a growth phase and is not yet sustainably profitable. Demand for its premium pet products, including those with CBD and other new ingredients, may be lower than planned – for example due to higher prices, inflation or a lack of acceptance among pet owners. Strong competition, wrong decisions by management, the loss of key employees or negative media coverage can further worsen business performance. This can lead to lower revenues and, in the worst case, to you losing all of the money you have invested.
- Regulation, supply chain, platform and operations
HEROSAN depends on regulated products (pet food, CBD) as well as on raw materials and external manufacturers. Changes in laws, stricter requirements or delays in approvals can mean that certain products may not be sold at all or only with restrictions. Problems with suppliers or production partners (e.g. quality, capacity, long lead times) can slow growth, increase costs and reduce HEROSAN’s ability to pay interest and repay your capital. In addition, there is a risk that the crowdfunding platform or technical systems may temporarily fail or cease operations. This can cause delays in the provision of information as well as in interest and redemption payments, even though your contractual claims generally remain in place.
- Default, return and liquidity risk
If HEROSAN gets into financial difficulties or becomes insolvent (for example due to poor market or business development), interest and repayments may be made late, in a reduced amount or not at all. In the worst case, you may lose all of the money you have invested. There is currently no active secondary market for this bond. You may not be able to sell your investment before the end of the term, or only by accepting financial losses. In addition, inflation, taxes and – where relevant – exchange rate fluctuations can further reduce your actual return.
- Investor rights and technology risks of electronic securities
As a holder of the notes, you do not have any voting or participation rights in the company and no influence on how exactly HEROSAN uses the capital raised. The bond terms can also be changed by majority decisions of the other investors, even against your will (for example lower interest or a longer term). The bond is issued as an electronic security in a digital register and held in digital wallets. Technical errors, hacker attacks or failures of these systems may mean that you temporarily or, in the worst case, permanently lose access to your electronic securities.
A complete and detailed description of all risk factors can be found only in the KIIS in the documents section of this funding round.
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