Risk Disclosure

Effective date: 23 September 2026. This disclosure is provided for information. It is not exhaustive, and it will be expanded in any formal participation documentation issued in future.

1. Purpose of this disclosure

Tera Farms Investment is an agricultural business at an early stage of development. Management is considering a structure under which participants could contribute capital toward estate development. That structure has not been finalised, is under legal review, and no contribution is being accepted through this website. This document sets out the principal risks so that anyone considering future participation understands the nature of the business before any formal documentation is issued.

2. Agricultural and biological risk

Crop performance depends on rainfall, temperature, soil condition, the quality of planting material, pests, diseases and the standard of field management. Oil palm, coconut and mango are all subject to established diseases and pests, and yields vary materially from year to year, from block to block and between estates. Some plantings may fail and require replacement. There is no assurance that any crop will reach its expected productivity.

3. Establishment and timing risk

Tree crops take years to reach commercial production. Oil palm typically begins bearing a few years after planting and reaches full production later; coconut and mango follow their own timelines. Before planting can begin, land must be verified, surveyed and assessed, cleared and prepared, and planting material sourced. Each of these steps can be delayed by weather, availability of contractors and seedlings, community or regulatory processes, or funding. Published timelines are planning targets and may slip.

4. Land and legal risk

Development depends on the company securing and retaining lawful rights to the land it develops. Land verification, survey, title documentation, customary consents and government permissions may take longer than expected, cost more than expected or, in some cases, not be obtained. Disputes over land can arise in Nigeria and can delay or halt development.

5. Market and price risk

Prices for fresh fruit bunches, palm oil, coconut and mango move with local and international supply and demand, exchange rates, transport costs and government policy. Revenue depends on finding buyers at acceptable prices at the time of harvest, and on the logistics needed to deliver perishable produce promptly.

6. Operational and management risk

The business depends on its management team, on skilled and unskilled labour, on access to fertiliser, fuel, equipment and spare parts, and on roads and infrastructure. Loss of key people, labour disputes, theft, fire, equipment failure or rising input costs may all affect results. Any future processing activity would carry additional technical and commercial risks.

7. Financial and capital risk

Agricultural estates require significant capital for several years before producing meaningful revenue. The company may need more capital than planned, may not be able to raise it on acceptable terms, and may need to slow or reduce development as a result. Revenue is not profit: operating costs, administration, financing, taxes and reserves must all be met before any profit exists, and only a portion of profit could ever be distributable. The value of any future participation may fall, and participants may lose some or all of what they contribute.

8. Liquidity risk

Any future participation in a private agricultural business is unlikely to be readily transferable or redeemable. Participants should expect to hold their participation for the long term and should not rely on being able to exit.

9. Regulatory and structural risk

The form of any participation, whether equity, a profit-sharing arrangement or another instrument, and the rights attached to it will be determined only when the legal structure is finalised. Changes in Nigerian law, regulation or tax treatment may affect the structure, the business or participants. Nothing on this website should be read as describing the final terms, and no return is guaranteed.

10. Environmental, social and climate risk

Changing rainfall patterns, extreme weather, flooding or drought may affect yields and infrastructure. The business must also maintain good relations with neighbouring communities and comply with environmental requirements, and failure to do so could disrupt operations.

11. Forward-looking statements

This website and any future documentation may contain forward-looking statements about planting, production, processing, revenue or expansion. These are based on assumptions that may prove wrong and are subject to the risks described above. They are not guarantees of future performance.

12. Information risk

Much of the information on this website is labelled as management reported, estimated or an assumption, and has not been independently verified. Decisions should not be based on such information alone.

13. What this means for you

Participation in an agricultural business of this kind is suitable only for people who understand these risks, are able to commit funds for the long term and could withstand the loss of their contribution. Anyone considering participation should take independent legal, financial and tax advice, and should rely only on the formal documentation issued at the time, not on this website.

For questions, please use the contact form and select "Investor information request". We respond with approved information only.