Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 319

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 319
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or actions, which may have material adverse effect on the combined company’s business, financial condition or results of operations
and any such action could cause the value of our securities to significantly decline or be worthless.

As uncertainties remain regarding the interpretation and implementation
of these laws and regulations, we cannot assure you that the combined company following a business combination will comply with such regulations
in all respects and it may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. As a result,
both you and we face uncertainty about future actions by the PRC government that could significantly affect our ability to offer or continue
to offer securities to investors and cause the value of our securities to significantly decline or be worthless.

Other PRC governmental authorities may take the view now or in the
future that an approval from them is required for an overseas offering by a company affiliated with Chinese businesses or persons or a
business combination with a target business based in and primarily operating in China.

The M&A Rules, adopted by six PRC regulatory agencies in 2006,
and amended in 2009, require an offshore special purpose vehicle formed for the purpose of an overseas listing of securities in a PRC
company to obtain the approval of the CSRC prior to the listing and trading of such special purpose vehicle’s securities on an overseas
stock exchange. The scope of the M&A Rules covers two types of transactions: (a) equity deals where the acquisition by a foreign investor
(e.g., the offshore special purpose vehicle) of equity in a “PRC domestic company,” and (b) asset deals where the acquisition
by a foreign investor of the assets of a “PRC domestic company.” We do not believe that either the equity or asset deal provisions
of the M&A Rules will be implicated in any of our initial business combination process with a PRC-based target for the reason that
any acquisition will be conducted through a WFOE established by means of direct investment, which would hold the shares of the PRC-based
target. To date, the CSRC has not issued any definitive rules or interpretations concerning whether offerings such as the indirect listing
of a PRC-based entity as part of the business combination are subject to the CSRC approval procedures under the M&A Rules. As a result,
based on our management’s understanding of the current PRC laws, rules, regulations and the local market practices, the CSRC’s
approval under the M&A Rules will not be required in the context of our business combination with a China