1. General Investment Risk
“You may lose your entire investment.”
Investing in the Gonen Statutory Trust involves a high degree of risk.in early-stage venture with a limited operating history. We cannot guarantee that the achieve its investment objectives or that you will receive a return on your capital. You should only invest an amount you can afford to lose entirely.
2. Illiquidity & Transfer Restrictions
“There is no public market for these securities.”
The shares (or units) offered are “restricted securities” under federal law. There is currently no secondary market (like the NYSE) for these units, and one may never develop. Under Reg CF, you are generally prohibited from reselling your investment for the first 12 months, and thereafter, finding a buyer may be difficult or impossible.
3. Specific Risks (Wyoming Law)
“Changes in Wyoming could impact operations.”
The relies on the favorable legal and tax environment of the State of Wyoming. While Wyoming is currently a leading jurisdiction for the future legislative changes or court rulings could diminish the protections or tax advantages currently enjoyed by the, potentially harming the value of your investment.
4. Asset Concentration (Life Insurance/Media)
“Our performance depends on a concentrated portfolio of assets.”
The GCC intends to invest heavily in specific asset classes, such as life insurance policies and digital media rights. If the insurance carriers fail to meet their obligations, or if digital streaming technologies (like HLS) become obsolete, the net asset value could decline significantly.
5. Reliance on Management
“We depend on a small management team.”
The success of the Gonen Statutory Trust is highly dependent on the expertise of our core leadership. The loss of key personnel could disrupt operations. Furthermore, as a corporation the broad discretion over the management of assets, and investors (as beneficial owners) may have limited voting power to the stockholders in the corporation.
6. Valuation Risk
“The offering price was determined by us, not the market.”
The price of the units in this offering has been determined arbitrarily by the GST and does not necessarily reflect the actual value of the assets or its future earnings potential.
Pro-Tip for your Form C:
The SEC requires these risks to be specific. Don’t just say “The economy might crash.” Instead, say: “A rise in federal interest rates could increase the cost of maintaining our leveraged insurance positions, reducing the GST distributable cash flow.”