Company: OWLS
Filing Date: 2025-09-24
Form Type: F-1/A
Source: 0001193125-25-213968
Chunk: 113

Company: OBOOK HOLDINGS INC.
Filing Date: 2025-09-24
Form: F-1/A
Chunk 113
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 Class A Common Shares may be unable to bring claims under Sections 11 and 12(a)(2) of the Securities Act due to tracing requirements, which may limit the remedies available to investors in a direct listing.

In June 2023, the U.S. Supreme Court held in Slack Technologies, LLC v. Piranithat shareholders asserting Section 11 claims must plead
and prove that their shares are traceable to an allegedly defective registration statement. This decision confirms that tracing requirements apply in the context of direct listings, making it harder for investors in these offerings to bring
Securities Act claims. While the Supreme Court did not rule on the scope of Section 12(a)(2) liability, courts may impose similar traceability requirements; in February 2025, the U.S Court of Appeals for the Ninth Circuit, on remand of the Slackcase, held that the same traceability requirements apply to Section 12(a)(2) liability.

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Because direct listings typically involve a greater proportion of unregistered to registered
shares in the public pool of listed shares, any tracing requirement is more pronounced in a typical direct listing as compared to a traditional firm commitment underwritten IPO where the majority of the unregistered shares of the issuer could be
subject to a customary lock-up for a period of time upon an IPO. In a direct listing like ours, investors may be unable to establish that their shares were issued pursuant to a registration statement. As a result, liability under Section 11 and
Section 12(a)(2) may be unavailable to some investors, even in the event of a material misstatement or omission in a registration statement.

As a result, investors in this offering may have fewer legal protections compared to those available to investors in a traditional initial
public offering, which could adversely affect investor confidence and demand for our Class A common stock. If a shareholder is nonetheless successful in bringing a Securities Act claim against us stemming from our direct listing, any adverse outcome
in such litigation may have a material adverse impact on our business, results of operations and/or financial condition.

Certain of our shareholders are expected to have different contractual lock-up agreements or other contractual restrictions on transfer from what is customary in an underwritten initial public offering. Following our listing, sales of substantial amounts of our Class A Common Shares in the public markets, or the perception that sales might occur, could cause the trading price of our Class A Common Shares to decline.

In addition to the supply and demand and volatility factors discussed above, sales of a substantial number of Class A