Company: MASK
Filing Date: 2025-12-02
Form Type: POS AM
Source: 0001185185-25-001899
Chunk: 119

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-02
Form: POS AM
Chunk 119
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 Selling Shareholder the resulting economic difference in cash, calculated as set forth in the L1 Letter Agreement. Furthermore,
the Selling Shareholder may earn a positive rate of return even if the price of the Class A Ordinary Shares declines significantly. As
a result, the Selling Shareholder may be willing to sell their shares at a price less than shareholders that acquired their Class A Ordinary
Shares in the public market or at higher prices than the price paid by such Selling Shareholder, the sale of which would result in the
Selling Shareholder realizing a significant gain even if other MASK shareholders experience a negative rate of return.

The conversion of the Convertible Notes, the exercise of the Warrants or future sales of our Class A Ordinary Shares may further dilute our securities and adversely impact the price of our Class A Ordinary Shares.

As of the date of this prospectus, 16,848,107 of
our Class A Ordinary Shares are unrestricted and freely tradable. The originally filing of this registration statement, of which this
prospectus forms a part, has been declared effective by the SEC on July 7, 2025, upon which up to an additional 16,128,681 Class A Ordinary
Shares will be unrestricted and freely tradeable when issued. If the holders of our free trading shares wanted to make a profit on their
investment (or if they wish to sell for a loss), there might not be enough purchasers to maintain the market price of our Class A Ordinary
Shares on the date of such sales. Any such sales, or the fear of such sales, could substantially decrease the market price of our common
shares and the value of your investment.

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Sales of shares issuable upon the conversion of the Convertible Notes, exercise of the Warrants and the effectiveness of our registration statement may cause the market price of our shares to decline.

Pursuant to the Securities Purchase Agreement and
in connection with this offering, (i) up to 10,476,190 Class A Ordinary Shares underlying the Convertible Notes may be issued with the
conversion price per share equal to the lower of US$3.71 or 93% of the lowest daily VWAP in the ten trading days immediately preceding
the applicable conversion date, (ii) up to 4,190,490 Class A Ordinary Shares underlying the Warrants may be issued with the exercise price
per share of US$3.71 and (iii) 1,248,611 Pre-Delivery Shares