Risk factors

Investing in our common shares involves a high degree of risk. You should carefully consider the risks described below before making an investment decision regarding our common shares. Our business, financial condition, results of operations, cash flows and/or prospects could be adversely affected by any of these risks, among others. The market price of our common shares could decline due to the occurrence of any of these risks or other factors, and you may lose all or part of your investment. The risks described below are those that we currently believe may materially affect us. Additional risks and uncertainties not currently known to us, or those that we currently deem to be immaterial, may also materially and adversely affect our business, financial condition, results of operations, cash flow and/or prospects, and/or the price of our common shares.

If we are unable to successfully forge and maintain good relationships with our content providers, we may be materially and adversely affected

We believe our relationships with providers of content, which usually consist of internationally acclaimed artistic or cultural productions, are essential to our success because high-quality content attracts corporate sponsors and generates higher levels of audience satisfaction. However, in the live entertainment industry, long-term or exclusive contracts are unusual, and therefore we cannot guarantee that our content providers will continue to supply us with current or new content.

The entertainment industry is highly sensitive to unforeseeable changes in the public’s taste. We may be unable to maintain a portfolio of entertainment content that is responsive to current consumer preferences, which is a determining factor in attracting large audiences and ensuring the success of the events we promote

The live entertainment business depends significantly on producing shows attractive to the public, which in turn requires us to successfully identify and attract popular artists and other content. The shows we promote require time and investment to be produced and launched. For example, our Broadway adaptations require between eight to 12 months to be produced. For that reason, if a local adaptation of a Broadway show does not attract audiences due to a change in taste or a decline in the popularity of the show internationally, we could experience significant losses. If we are unable to quickly anticipate, identify or respond to changes in consumer preferences or if the public is not receptive to the performances we promote, demand for our artistic and cultural events may decline, which could materially and adversely affect us.

The lack of quality entertainment events or artists

Our promotion of artistic and cultural events may be affected by a variety of factors, including the lack of development of new artists into stars or of new content of interest to the public. A lack of quality entertainment material may result in increased competition to hire quality artists or content, which could result in higher costs to us, or a reduced numbers of events, all of which could materially and adversely affect us.

Pandemics, interruptions or catastrophic events

The existence of pandemics or contagious illnesses transmitted in public places in general may drastically reduce demand for the events we promote. A variety of factors such as fear amongst the general public as a response to media coverage or governmental campaigns to reduce large gatherings of people can influence people’s behavior, causing them to avoid crowded places and, in turn, negatively affect demand for our events.

Furthermore, natural disasters may harm our business

Unforeseeable events beyond our control, including natural disasters, terrorism and wars, may interrupt our operations and those of our suppliers, negatively impacting consumer spending. Events such as these may materially and adversely affect our business

The entertainment market is highly sensitive to changes in the domestic and global economies, especially to changes in the economies of the countries in which we operate

Since entertainment is not considered an essential service, the industry’s performance is very sensitive to variations in the economy, and it is historically one of the first areas to encounter reduced demand in a stagnating economy. Any downturn in the markets in which we operate will result in a decline in both the public’s and our corporate sponsor’s purchasing power and disposable income, which could cause a reduction of both the frequency of, and revenues from, live entertainment events that we promote including possibly requiring us to reduce ticket prices for these events. Such reductions could materially and adversely affect our business.