An investment in securities involves a high degree of risk. All investors should carefully consider the following factors in addition to the other information in this investor relations website before investing in Amilpar securities. 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. Amilpar’s business, financial condition, results of operations and prospects may be materially adversely affected by any of these risks.
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. This influence, as well as Brazilian political and economic conditions, could adversely affect the Company’s activities.
- Exchange rate instability may adversely affect the Company.
- Economic developments and the perception of risk in other countries, especially other emerging market countries, may adversely affect the market price of securities issued by Brazilian companies and the market price of Amilpar common shares.
- Amilpar may be required to incur significant expenses in the event of a catastrophe that is not officially declared as such by the Brazilian government.
- Amendments to tax laws and inspections by tax authorities may adversely affect Amilpar’s business.
- Amilpar’s future acquisitions may be restricted or may not be approved by the Administrative Council of Economic Defense (Conselho Administrativo de Defesa Econômica), or CADE, or the ANS (Agência Nacional de Saúde Suplementar / Brazilian National Health Agency).
2) Risks Relating to Amilpar’s Business
- Amilpar results of operations may be adversely affected if the Company is unable to accurately estimate or control its medical costs or are unable to increase its healthcare plan premiums to offset increases in medical costs.
- Amilpar business, including the rates the Company may charge to individual plan members, is subject to extensive governmental legislation and regulation by the ANS that is subject to change, and Amilpar cannot be certain of the effect of any such changes on its business and results of operations.
- Amilpar faces significant competition from other private healthcare coverage providers that could negatively affect its ability to maintain or increase its profitability.
- If Amilpar is unable to maintain satisfactory relationships with hospitals, physicians and other providers that are part of its third-party network, its profitability could decline and Amilpar may be precluded from operating in some markets.
- Any acquisitions or investments that Amilpar may make could turn out to be unprofitable.
- Amilpar may be unable to renew contracts or negotiate favorable contract terms with large clients from which the Company receives a significant percentage of its revenues from healthcare plan premiums.
- Claims relating to medical malpractice and other litigation could cause Amilpar to incur significant expenses.
- Amilpar is dependent on its senior management and other key associates.
- The success of Amilpar’s business depends on its ability to develop and maintain updated and secure information systems and technology infrastructure.
- Negative publicity regarding the managed care industry generally or Amilpar in particular could adversely affect its results of operations or business.
- Amilpar healthcare plans are highly concentrated in the states of São Paulo and Rio de Janeiro. A significant decrease in its market share, economic slowdown or any natural catastrophes or catastrophes caused by man in such states could adversely affect its business.
- Advances in medical techniques and pharmaceutical products, as well as other factors that Amilpar does not control, could result in unexpected expenses, which could adversely affect its results of operations and business.
3) Risks Related to Amilpar’s Common Shares
- An active and liquid market for Amilpar shares may fail to develop, limiting share sales. The holdings of Related People may have a negative impact on the liquidity of the shares and the price per share.
- The sale of a significant number of Amilpar common shares after the completion of this offering may adversely affect the market price of its common shares.
- The interests of Amilpar’s controlling shareholder may conflict with the interests of its other shareholders.
- Amilpar shareholders may not receive dividends.
- The Company may need additional funds in the future, which may not be available. If the company raises additional shares through the issue of shares, investors’ stakes in the Company may become diluted. Moreover, we reserve the right, in the future if we have interest, to adopt another Stock Option Plan to directors and employees. These terms and conditions include, among other things, the total potential dilution, the terms for the exercise and the option price. If adopted, this plan will result in a dilution of our capital to investors.
- The protections afforded to minority shareholders in Brazil are different from those in the United States and certain other jurisdictions, and may be more difficult to enforce.