| RISK FACTORS An investment in our common stock involves a high degree of risk. An investor should carefully consider the following factors and other information in this prospectus before deciding to invest in our Company. If any of the following risks actually occur, our business, financial condition, results of operations and prospects for growth would likely suffer. As a result, an investor could lose all or part of such investor's investment in our Company. 1. We expect losses in the future because we have no revenue.
As we have no current revenue, we are expecting losses over the next 12 months because we do not yet have any revenues to offset the expenses associated with being a public company. We cannot guarantee that we will ever be successful in generating revenues in the future.
2. We may not be able to continue operations as a going concern and our stockholders may lose their entire investment in us.
We incurred a net loss of $50,726 for the year ended December 31, 2006. In addition, we had cash on hand of approximately $7,800. These factors raise substantial doubt about the Company's ability to continue as a going concern. 3. We may not be able to consummate the acquisition of UniverCompany.
Here can be no assurance that we will be able to consummate the proposed acquisition of UniverCompany. In addition to completing the due diligence on UniverCompany to our satisfaction, there is no assurance that they will be able to deliver to us consents from third parties which might be necessary to effectuate the change in control, audited financial statements and the other requisite information necessary in order for us to file a Current Report on Form 8-K and satisfy other closing conditions.
4. We have no agreement with UniverCompany with respect to the repayment of the 1, 000,000 we lent them.
In December 2006 we lent UniverCompany $1,000,000, the amount we raised by the sale of units to Hampton Park Capital LLC. The loan is currently non-interest bearing, unsecured by any collateral and has no specific maturity date. Since there are no specific repayment terms and the borrower is located in Russia, such loan may never be repaid to us.
5. Our potential acquisition of UniverCompany, a Russian company, may subject us to additional risks.
If we are successful in consummating the proposed acquisition of UniverCompany, we will be subject to risks inherent in business operations outside of the United States. These risks include, for example, currency fluctuations, regulatory problems, punitive tariffs, environmental issues, unstable local tax policies, trade embargoes, risks related to shipment of raw materials and finished goods across national borders and cultural and language differences.
6. If we consummate the transaction, the sellers of UniverCompany will own a controlling interest in our voting stock and investors will not have any voice in our management, which could result in decisions adverse to our general shareholders.
7. We may, in the future, issue additional common shares, which would reduce investors' percent of ownership and may dilute our share value.
8. Because we do not intend to pay any cash dividends on our common stock, our stockholders will not be able to receive a return on their shares unless they sell them.
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