Company: NCL
Filing Date: 2025-12-04
Form Type: DEF 14A
Source: 0001575872-25-000744
Chunk: 31

Company: Northann Corp.
Filing Date: 2025-12-04
Form: DEF 14A
Chunk 31
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 reserves the right to elect to abandon the Reverse Split if it determines, in its sole discretion, that
the Reverse Split is no longer in the best interests of us and our stockholders.

Purpose and Rationale for the Reverse Split

Avoid Delisting from the NYSE American.

We are submitting this proposal
to our stockholders for approval in order to increase the trading price of our common stock to meet the minimum per share bid price requirement
for continued listing on the NYSE American. We believe increasing the trading price of our common stock may also assist in our capital-raising
efforts by making our common stock more attractive to a broader range of investors. Accordingly, we believe that the Reverse Split is
in our stockholders’ best interests.

Although we already conducted
a 1-for-8 reverse stock split of the Company’s common stock and Series A Preferred Stock on October 7, 2025, with the common stock
beginning trading on a split-adjusted basis on the NYSE American at the commencement of trading on October 8, 2025 under the Company’s
existing symbol “NCL,” our common stock may continue to be sold for a substantial period of time at a low price per share.
As a result, NYSE American may decide that we are not in compliance with the continued listing standard set forth in Section 1003(f)(v)
of the NYSE Company Guide .

The primary purpose of the
Reverse Split is to increase the per share price of our common stock in order to maintain the listing of our common stock on the NYSE
American. Accordingly, for these and other reasons discussed below, we believe that effecting the Reverse Split is in the Company’s
and our stockholders’ best interests. We believe proposing multiple ratios for the Reverse Split, rather than proposing that stockholders
approve a specific ratio at this time, provides the Board with the most flexibility to achieve the desired results of the Reverse Split.

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Failure to approve the Reverse
Split may potentially have serious, adverse effects on us and our stockholders. Our common stock could be delisted from the NYSE American
if our common stock continues to trade below the requisite $1.00 per share price needed to maintain our listing in accordance with the
bid price requirement. If our common stock is delisted from NYSE American, our common stock could then trade on the OTC Bulletin Board
or other small trading markets, such as the pink sheets, which are generally considered to be less efficient markets