Company: RETO
Filing Date: 2025-10-24
Form Type: 424B5
Source: 0001213900-25-102262
Chunk: 110

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-10-24
Form: 424B5
Chunk 110
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 -dealerselling a penny stock to anyone other than an established customer or “accredited investor” (generally, an individual with a net worth in excess of $1,000,000 or an annual income exceeding $200,000, or $300,000 together with his or her spouse) must make a special suitability determination for the purchaser and must receive the purchaser’s written consent to the transaction prior to sale, unless the broker -dealeror the transaction is otherwise exempt. In addition, the “penny stock” regulations require the U.S. broker -dealerto deliver, prior to any transaction involving a “penny stock”, a disclosure schedule prepared in accordance with SEC standards relating to the “penny stock” market, unless the broker -dealeror the transaction is otherwise exempt. A U.S. broker -dealeris also required to disclose commissions payable to the U.S. broker -dealerand the registered representative and current quotations for the securities. Finally, a U.S. broker -dealeris required to submit monthly statements disclosing recent price information with respect to the “penny stock” held in a customer’s account and information with respect to the limited market in “penny stocks”. The market for “penny stocks” has suffered in recent years from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker -dealersthat are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) “boiler room” practices involving high -pressuresales tactics and unrealistic price projections by inexperienced 38 sales persons; (iv) excessive and undisclosed bid -askdifferentials and markups by selling broker -dealers; and (v) the wholesale dumping of the same securities by promoters and broker -dealersafter prices have been manipulated to a desired level, resulting in investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker -dealerswho participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. General Risk Factors We are subject to changing law and regulations regarding regulatory matters, corporate governance and public disclosure that have increased both our costs and the risk of non-compliance . We are subject to rules and regulations by various governing bodies