Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 29

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 29
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 other Chinese authorities for the listing and trading of our Class A ordinary shares
on a foreign stock exchange could have a material adverse effect upon our business. If we or our subsidiaries inadvertently conclude that
such approval or permission is not required, fail to obtain and maintain such approval or permission required, we or our subsidiaries
may face sanctions by the CSRC, CAC or other PRC regulatory agencies for failure to seek CSRC, CAC approval. These sanctions may include
fines and penalties on our operations in China, limitations on our operations in China, delays in or restrictions on the repatriation
of the proceeds from this offering into the PRC, restrictions on or prohibition of the payments or remittance of dividends by our subsidiaries
in China, or other actions that could have a material adverse effect on our business, financial condition, results of operations, reputation,
prospects, the trading price of our Class A ordinary shares, and the ability to offer the securities being registered to foreign investors.

On August 8, 2006, six PRC regulatory agencies
jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which
came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules requires that an offshore special
purpose vehicle formed for overseas listing purposes and controlled directly or indirectly by the PRC Citizens shall obtain the approval
of the CSRC prior to overseas listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. Based
on our understanding of the Chinese laws and regulations in effect at the time of this prospectus, we will not be required to submit an
application to the CSRC for its approval of this offering and the listing and trading of our Class A ordinary shares on the Nasdaq under
the M&A Rules. However, there remains some uncertainty as to how the M&A Rules will be interpreted or implemented, and the opinions
of our PRC counsel summarized above are subject to any new laws, rules and regulations or detailed implementations and interpretations
in any form relating to the M&A Rules. We cannot assure you that relevant Chinese government agencies, including the CSRC, would reach
the same conclusion.

Recently, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Strictly Cracking Down on Illegal Securities Activities, which were made available to the public on July