Company: NKLR
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-108246
Chunk: 63

Company: Terra Innovatum Global N.V.
Filing Date: 2025-11-10
Form: S-1
Chunk 63
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 a strengthening of the U.S. dollar against the euro
would reduce the reported U.S. dollar value of our euro-denominated revenues and assets, while a weakening of the U.S. dollar would increase
the U.S. dollar value of our euro-denominated expenses and liabilities. Although we may enter into hedging arrangements to partially mitigate
foreign currency risk, such transactions may not fully offset adverse movements, may entail significant costs and may expose us to additional
risks, including counterparty credit risk and accounting volatility.

In addition, under Italian law, payments of dividends
and interest by our Italian subsidiaries to U.S. or other non-Italian shareholders may be subject to withholding taxes at rates up to
26% unless reduced by an applicable tax treaty. Such withholding could reduce the net amount of cash available for distribution to our
shareholders, adversely impact the attractiveness of our ordinary shares to certain investors and, in certain circumstances, require us
to incur additional costs to secure treaty relief or obtain tax indemnities. Any changes in Italian or U.S. withholding tax rates, amendments
to existing treaties or interpretations by tax authorities could further increase our tax burden and reduce the value of your investment.

Risks Related to Ownership of Terra Shares and Terra Operating as a Public Company

Our only significant asset is our ownership interest in Terra OpCo, and such ownership may not be sufficient to satisfy our financial obligations.

We have no direct operations and no significant
assets other than our ownership of Terra OpCo and of GSR III. We will depend on Terra OpCo for distributions, loans and other payments
to generate the funds necessary to meet our financial obligations, including our expenses as a publicly traded company and to pay any
dividends with respect to Terra Shares. The financial condition and operating requirements of Terra OpCo may limit our ability to obtain
cash from Terra OpCo. The earnings from, or other available assets of, Terra OpCo may not be sufficient to pay dividends or make distributions
or loans to enable us to pay any dividends on Terra Ordinary Shares or satisfy our other financial obligations.

This lack of diversification may subject us to numerous
economic, competitive and regulatory risks, any or all of which may have a substantial adverse impact upon the particular industry in
which we may operate.

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If a U.S. person is treated as owning at least 10% of the stock of Terra, such person may be subject to adverse U.S. federal income tax consequences.

If a U.S.