Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 58

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 58
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 relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal
and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards are subject to varying
interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time
as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters
and higher costs necessitated by ongoing revisions to disclosure and governance practices. These laws and regulations may increase our
legal and financial compliance costs and render our certain business activities more time-consuming and costly.

Members of our management
team have limited experience managing a publicly traded company, interacting with public company investors and complying with the increasingly
complex laws pertaining to public companies. Our management team may not successfully or efficiently manage the transition to being a
public company subject to significant regulatory oversight and reporting obligations under the federal securities laws and regulations
and the continuous scrutiny of securities analysts and investors. The need to establish the corporate infrastructure demanded of a public
company may divert the management’s attention from implementing our growth strategy, which could prevent the improvement of our
business, financial condition and results of operations. Furthermore, these rules and regulations may make it more difficult and more
expensive for us to obtain director and officer liability insurance, and consequently we may be required to incur substantial costs to
maintain the same or similar coverage. These additional obligations could have a material adverse effect on our business, financial condition,
results of operations and prospects. These factors could also make it more difficult to attract and retain qualified members of our board
of directors, particularly to serve on our audit committee, compensation committee and nominating committee, and qualified executive
officers.

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Recent market volatility could impact the share price and trading volume of our securities.

The trading market for our
securities could be impacted by recent market volatility. Recent stock run-ups, divergences in valuation ratios relative to those seen
during traditional markets, high short interest or short squeezes, and strong and atypical retail investor interest in the markets may
impact the demand for the Ordinary Shares.

A possible “short
squeeze” due to a sudden increase in demand of the Ordinary Shares that largely exceeds supply may lead to price volatility in
the Ordinary Shares. Investors may purchase the Ordinary Shares to hedge existing exposure or to speculate on the price of the Ordinary
Shares. Speculation on the price of the Ordinary Shares may involve