Risk Warning

To help you understand the risks associated with investing in shares, we invite you to read the risk summary below.

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Risk of Capital Loss

The majority of startups fail or do not develop as expected, and consequently, investing in such companies can carry significant risk. It is possible that you could lose all or part of your investment. You should only invest an amount you are prepared to lose. If a company you invest in goes bankrupt, neither the company – nor Blast. – will reimburse your investment.

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Lack of Liquidity

Liquidity is the ease with which you can sell your shares after purchasing them. Shares in companies launched through Blast Club are not easily sellable, and it is unlikely they will be listed on a secondary market, such as AIM, Plus, or the London Stock Exchange. Even successful companies rarely have their shares traded on such a market.

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Scarcity of Dividends

Dividends are payments made by a company to its shareholders from the company's profits. Most companies raising funds on the Blast. platform are startups or young companies, and these companies rarely pay dividends to their investors. This means you are unlikely to see a return on your investment until you can sell your shares. Profits are generally reinvested in the company to fuel growth and create shareholder value. Companies are under no obligation to pay dividends to shareholders.

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Dilution

Any equity investment made through Blast. may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not purchase any of the newly issued shares.

Consequently, an existing shareholder's proportional ownership in the company is reduced, or "diluted" – which impacts a number of things, including voting rights, dividends, and value.

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The Essential Need for Investment Diversification

To minimize risks and maximize the potential overall return on your invested capital, we advise you to diversify your investments. Diversification involves spreading your money across various types of investments with different risk profiles. Investors should only invest a portion of their available capital through Blast. and should balance it with safer, more liquid investments.