RisksUpdated 2026-06-25
Risks & Mitigations
We state the risks plainly, with the mitigation against each.
| Risk | Mitigation |
|---|---|
| Climate (the proven risk) | A climate-resilient rebuild in Phase 1; a $100,000 contingency reserve; current civil and worker-safety insurance (most jungle climate damage is uninsurable — which is exactly why the reserve exists); and a modeled business-interruption case. |
| Restart & runway | The first two years are loss-making. Capital is drawn in milestone tranches; the hard minimum is small (~$700k); and demand is already proven, so the restart is commercial execution, not market discovery. |
| Single asset & execution | Conservative ramp assumptions (→55%), a downside that stays profitable (~23%), a low fixed-cost base, and conservation-expansion optionality that adds value independent of nightly occupancy. |
| Ceremonial offerings | Run by independent third-party practitioners who hold the licenses and the liability, under agreements with waivers and medical screening; AWAKEN earns only a referral and does not operate them. |
Not material — in fact strengths
Three things commonly assumed to be Amazon-project risks are, here, the opposite:
- Land title is clean. All land is private property registered with SUNARP with a COFOPRI-formalized chain of title, outside the constitutional border-zone. There is no land-tenure overhang.
- Tax is locked in. The Ley 27037 regime (5% income tax and IGV exemption) is in force through 2048 — a multi-decade fiscal advantage, not a contingency.
- No FPIC requirement. The neighboring community is a riverside community, not an indigenous community, so a formal FPIC process is not required; the company has nonetheless held a cooperation agreement with the community since 2020.
Open due-diligence items (term sheet for the convertible, the Ley 27037 tax opinion, ceremony third-party agreements) are indexed in the Legal Appendix. Forward-looking figures are management estimates. Confidential.