Company: PMVC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107610
Chunk: 178

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 178
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    a
    determination that our shares of common stock are “penny stock”, which will require brokers trading in our shares of
    common stock to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading
    market for our shares of common stock;

35

    ●
    a
    limited amount of news and analyst coverage for our company; and

    ●
    a
    decreased ability to issue additional securities or obtain additional financing in the future.

Currently
our securities are not eligible for proprietary broker-dealer quotations. All quotes will reflect unsolicited customer orders and, as
a result, we expect any trading to involve a higher risk of wider spreads, increased volatility, and price dislocations and a general
illiquid trading environment. Proprietary broker-dealer quotations may not commence until an initial review by a broker-dealer under
the SEC’s Rule 15c2-11 which would enable brokers to publish competing quotes and provide continuous market making. No assurance
can be provided that a liquid trading market will develop even if market makers begin proprietary quotations and thus we expect investors
will experience difficulty in trading our securities.

The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the
sale of certain securities, which are referred to as “covered securities.” Because they have been delisted, our securities
would not be covered securities and we would be subject to regulation in each state in which we offer our securities. This state level
regulation introduces additional compliance requirements for brokers to consider making markets in our securities and will further negatively
impact any trading liquidity in our securities.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

On
March 20, 2020, the Sponsor purchased 3,593,750 shares of Class B convertible common stock, the “Founder Shares”, for an
aggregate purchase price of $25,000, or approximately $0.007 per share. On August 3, 2020, the Company effected a 1.4-for-1 forward stock
split of its issued and outstanding shares of Class B convertible common stock, resulting in an aggregate of 5,031,250 Founder Shares
being issued and outstanding. The Underwriters’ over-allotment option expired unutilized resulting in 656,250 shares of Founder
Shares being forfeited. As of September 30, 2025 and December