Company: GCTS
Filing Date: 2025-07-25
Form Type: PRE 14A
Source: 0000950170-25-098780
Chunk: 53

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-07-25
Form: PRE 14A
Chunk 53
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LOC provides us with important sources of liquidity as we continue to fund our operations and support our transition into the commercial phase of our 5G product line. However, future sales of common stock pursuant to the ELOC could result in the issuance of more than 19.99% of our currently outstanding common stock. Under Section 312.03 of the NYSE Listed Company Manual, stockholder approval is required prior to certain issuances of common stock that exceed this threshold. Accordingly, we are seeking stockholder approval of this Proposal 3 in order to preserve our ability to raise capital under the ELOC without breaching NYSE rules regarding shareholder approval thresholds.

Reason for Seeking Stockholder Approval

Under Section 312.03 of the NYSE Listed Company Manual, stockholder approval is required prior to the issuance of shares of common stock, or of securities convertible into or exercisable for common stock, in certain circumstances, including (a) if the number of shares of common stock to be issued is, or will be upon issuance, equal to or in excess of 20% of the number of shares of common stock outstanding before the issuance of the common stock or of securities convertible into or exercisable for common stock and (b) if the issuance will result in a change of control of the issuer (“NYSE Change of Control Provision”).

The aggregate number of shares of common stock that may become issuable pursuant to the ELOC may exceed 19.99% of the shares of our common stock outstanding immediately prior to such issuances. In order to comply with the with the NYSE Listed Company Manual, we are seeking the approval of stockholders for the potential issuance of shares of our common stock in excess of 19.99% of our outstanding common stock pursuant to the ELOC. As of June 30, 2025, we have raised an aggregate of $9.7 million by issuing a total of 2,438,737 shares our common stock under the ELOC and received $8.7 million in net cash proceeds.

Approval of this Proposal 3 will constitute stockholder approval for purposes of Section 312.03 of the NYSE Listed Company Manual with respect to the issuance of shares of our common stock in excess of 19.99% of our outstanding common stock in connection with the ELOC and the exercise of outstanding warrants, or in any other future strategic transaction subject to such limitation.

In the event that this Proposal 3 is not approved by our stockholders, we may be restricted from issuing shares of common stock