RISKS.

MANAGEMENT OF RISKS

The management team has considered all possible risks that could arise for Tabu Equity Investments Inc. With the help of their industry background and experience, there is no doubt that this will be a very successful business venture soon. Here are some of the risks that Tabu Equity Investments Inc. faces:

Competitive Risks

Every business idea is prone to be copied by bigger and better players in the market. If there is money to be made by filling a market gap, there are plenty of others aiming to capture the market share. Cannabis is a rapidly growing industry and there will be competitor risks in the near future. Tabu Equity Investments Inc. will continuously monitor the market for any competitors, and the Partners will analyze Tabu Equity Investments Inc.’s uniqueness whether it’s management team, services, success rate or some other things – and focus on maintaining Tabu Equity Investments Inc.’s leadership in those categories.

Market Risks

The experienced team of analysts at Tabu Equity Investments Inc. will use their expertise to accurately price the stock as best they can. Tabu Equity Investments Inc. can lose money on the deal if they have overvalued the stock, as in this case they will often have to sell the stock for less than they initially paid for it. As Tabu brings several years of experience in the investment banking sector, the chances of this happening are very slim.

Financial Risks

The biggest financial risk to Tabu Equity Investments Inc. is running out of cash. The second biggest financial risk is not having a Plan B in case investors say no or delay the financing. With the existing cash in hand, Tabu Equity Investments Inc. would invest in the cannabis companies that have a real potential to grow and prosper. With the help of those investment returns, Tabu Equity Investments Inc. will be able to fund the operations until the external investment is obtained.

People Risks

As entrepreneurs, Tabu Equity Investments Inc. have established a clear vision for Tabu Equity Investments Inc. that the entire team will rally behind. People risks for Tabu Equity Investments Inc. are minimal.

Legal & Regulatory Risks

As cannabis industry is heavily regulated industry, any adverse changes in regulations would directly impact Tabu Equity Investments Inc. The possible legal or regulatory issues are still endless: tax complications, disputes from investors, lawsuit filed by cannabis companies, etc. Tabu Equity Investments Inc. will hire and retain a law firm that has experience in cannabis industry. Tabu Equity Investments Inc. will periodically meet the law firm to keep them informed of the growth plan, so that the firm can spot potential legal problems even before they arise.

Credit Risk

Credit risk is defined as a potential loss as a result of a borrower failing to repay a loan. The risk prevention and collection strategy depends on the reason for the default: unwillingness to pay or financial distress of the borrower. Tabu Equity Investments Inc. will have proper payment procedures and trainings in place as a part of early risk recognition system. There will be an ongoing customer and risk evaluation of the target cannabis companies to avoid any credit risks.

Market Analysis

Canada cannabis legalization is the next big growth catalyst for marijuana stocks.

Target Segments

We will focus on companies in the legal cannabis industry in many key areas

Demand & Strategy

The upcoming surge in demand and our company's marketing strategies

Risks

An overview of the risks Tabu Equity Investments Inc. will potentially face.

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