rially below the Fair Value, but the Appraisal Proceeding resulted in a costly or failed outcome due to procedural impediments, the poor quality of the Corporate Value Fund's legal representation, judicial discretion and/or other factors. Even if Hudson Bay Capital's investment analysis of a transaction is accurate, this

e it is finally adjudicated. In certain circumstances, under Delaware Law the Acquiror may exercise the option to prepay all or certain portions of the Corporate Value Fund's Investment at the Transaction Price after the Appraisal Proceeding commences, but prior to its resolution (a "Prepayment Option Amount"), in order

apital Events that do occur. There can be no assurance that inflation will not become a serious problem in the future and have an adverse impact on the Corporate Value Fund's returns. Financing Arrangements; Availability of Credit The Corporate Value Fund may, with the consent of the Institutional Investor, use leverage

n unpredictable amount of time — often as long as several years. Hudson Bay Capital may, in certain situations, attempt to agree upon a payment for the Corporate Value Fund's holdings in the Target with the Acquiror and settle the Corporate Value Fund's interest in the Appraisal Proceeding. The Acquiror may also prepay t

cilitate its hedging activities. Hedging The hedging transactions in which the Corporate Value Fund will engage may not be effective in mitigating the Corporate Value Fund's risks. Furthermore, Hudson Bay Capital may choose not to hedge certain risks (in whole or in part) or determine that doing so would be economically

hich would correspondingly reduce the Strategy's profit potential. Dyferent Legal Protections Although Hudson Bay Capital expects that the bulk of the Corporate Value Fund's Investments will be in Targets/Acquirors subject to Delaware Law, a number may not be. The laws in different jurisdictions (for example, other stat