Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 204

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 204
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 substantial number of Ordinary Shares being registered
for potential resale by the Selling Shareholders pursuant to this prospectus, the sale of shares by the Selling Shareholders, or the perception
in the market that the holders of a large number of our Ordinary Shares intend to sell their shares, could increase the volatility of,
or result in a significant decline in, the public trading price of the Ordinary Shares. See “Shares Eligible for Future Sales”
for more details.

Because the prices at which certain Selling Shareholders acquired the securities that they may sell pursuant to this prospectus may be lower than that of our public shareholders, certain Selling Shareholders
may experience a positive rate of return on the securities that they sell pursuant to this prospectus and be incentivized to sell such
shares, when our public shareholders may not experience a similar rate of return. Certain of the securities being registered for sale
pursuant to this prospectus were purchased by certain Selling Shareholders at prices below the current market price of our Ordinary Shares.
Based on the closing price of our Ordinary Shares of $2.13 as of March 13, 2025, the Sponsor (with respect to the Sponsor Founder shares)
may experience potential profit of up to $2.121 per share, or an aggregate amount of profit of up to approximately $6.1 million.
Accordingly, such Selling Shareholders may have an incentive to sell their securities even the trading price is lower than the price at
which our public shareholders purchased their securities. In connection with the initial public offering of RFAC, RFAC’s initial
public shareholders acquired RFAC Public Units at a price of $10.00 per unit, each of which comprises one share of RFAC Common Stock,
one RFAC Warrant and one RFAC Right, and trading price of our Ordinary Shares have fluctuated, and may continue to fluctuate, following
the closing of the Business Combination. Epicsoft Ventures (with respect to the shares issued to Epicsoft Ventures in connection with
the Business Combination) may experience potential profit if the price of the Company’s Ordinary Shares exceeds $10.00 per share.
As a result, our public shareholders may not be able to achieve the same returns as Epicsoft Ventures, the Sponsor or EBC, or even any
positive return at all, on the Ordinary Shares if they sell our Ordinary Shares in the market at the then-prevailing market prices. See
“Risk Factors - Risks Related to Our Securities - Sales of a substantial number of our securities in the public market