These Risk Warnings are meant to provide general information to all users of the platform at “alta.exchange” (the “Platform”) owned and operated by Alta Sdn. Bhd. (formerly known as Fundnel Technologies Sdn. Bhd. (Company No.: 201701014864 (1229029-H)) (“Alta MY”) about risks involved in raising funds through the Platform or investing in a fundraising company (an “Issuer”). They are not, and should not be construed as, any form of legal, financial, tax, or other professional advice that is particular to any person, including yourself. You are responsible for seeking professional advice before participating in any such campaign, and for carefully considering whether such participation is suitable in light of your particular circumstances, including your particular level of experience and sophistication; investment objectives; risk appetite; investment horizon; and financial needs and resources.
You agree that your decision to raise funds through the Platform or invest in an Issuer is your sole responsibility and that Alta MY and its affiliates are in no way responsible for any adverse consequence or losses that you may directly or indirectly sustain as a result of such participation.
Should you participate as a retail investor in any campaign, the investment limit prescribed by the Securities Commission Malaysia for retail investors is a maximum of RM5,000 per Issuer with a total amount of not more than RM50,000 within a 12-month period. This limit is meant to protect retail investors given that investments into privately held companies through equity crowdfunding campaigns are high risk ventures. Risk factors include loss of the full amount of capital invested and lower than expected returns.
The following list of risk factors is provided for general information only. It is not an exhaustive list of all possible risks that may be involved. Explanations provided of each risk factor listed below are not comprehensive.
No guarantee that any fundraising target will be met. Whether any fundraising target (including, without limitations, targets in relation to target raise amount, type or number of investors, and time taken to reach any milestone) is met cannot be predicted or guaranteed. It is possible that an Issuer fails to meet any or all of its fundraising targets, including the amount sought to be raised.
No coverage from the Capital Market Compensation Fund. All losses resulting from investing through the Platform will not be covered by the Capital Market Compensation Fund. In other words, you cannot claim from the Capital Market Compensation Fund any loss you may sustain by investing in any Issuer.
Investment risk. The value of any investment instrument you purchase is affected by many factors, not all of which can be foreseen, controlled, or mitigated. Such value therefore cannot be guaranteed, and may fall or rise in a manner that affects the return on your invested capital. Past performance is not a reliable indicator of future performance, and should not be relied upon as such in deciding to invest in any Issuer. No investment in any Issuer carries any guarantee of distribution, interest payment, reward, or other return in any form whatsoever.
Loss of full capital amount. Issuers are generally earlystage companies. Such companies may not necessarily have an established track record, stable cash flow or profits, or a proven business model. The risk of business failure and, consequently, the loss of your full investment amount, is high. Investing in them is therefore a highrisk venture. Alta MY is not liable to refund or take any steps to ensure the refund of your investment amount, whether partly or in full, in the event of such loss.
Illiquidity. Generally, investments In equity crowdfunding should be done with a long-term view. Typical exit strategies include an IPO or a trade sale but these cannot be guaranteed. There may also be restrictions on transferring your investment instruments. Liquidity of the investment instrument you purchase may therefore be limited; i.e., it cannot be sold off quickly enough to avoid or minimize financial or other loss to you.
No assurance of performance. This Website may contain estimates, projections, or other statements that are not statements of historical fact. Examples include predictions on performance and information about a fundraising entity’s future business plans, and will include forward-looking language such as “may”; “likely”; “potentially”; and “approximately”. Such statements are forward-looking statements and are not statements of fact or a representation, warranty, assurance, or guarantee as to the truth, completeness, accuracy, or eventual fulfilment of the content thereof.
No assurance as to accuracy or accessibility of Issuers’ financial statements. Generally, the audited financial statements of an Issuer raising more than RM500,000 must be disclosed by the Issuer. However, such requirement may not be applicable to a newly-incorporated Issuer (i.e., incorporated for less than twelve (12) months). If that is the case, the financial information presented to you may not have been reviewed by a qualified professional auditor. Such unaudited financial statements may not accurately reflect the financial position of an Issuer.
Risks of equity investments. Return on equity investments will usually be in the form of dividend payouts or capital appreciation. However, neither can be assured. Your stake may also be diluted in both percentage and value should the Issuer issuing you equity subsequently undertake to issue more equity to additional shareholders. Should the Issuer become insolvent, certain other parties may rank ahead of you in the distribution of the Issuer’s remaining assets including, without limitation, creditors and employees. You may therefore not receive any distribution in event of insolvency.