Company: MASK
Filing Date: 2025-12-30
Form Type: F-1
Source: 0001185185-25-002198
Chunk: 62

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-12-30
Form: F-1
Chunk 62
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 ten trading days immediately preceding the applicable conversion date, subject to the Floor Price. 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 Note 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, approximately 12,621,530 of our Class A Ordinary Shares as unrestricted and freely tradable. Upon the effectiveness of the registration statement of which this prospectus forms a part, up to an additional 114,503,817 Class A Ordinary Shares will be unrestricted and freely tradeable. 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. 30 Sales of shares issuable upon the conversion of the Convertible Note 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, up to 114,503,817 Class A Ordinary Shares underlying the Convertible Note may be issued with the conversion price per share equal to the lower of US$0.4327 or 93% of the lowest daily VWAP in the ten trading days immediately preceding the applicable conversion date. The sale of our Class A Ordinary Shares upon the conversion, exercise or the sale of a significant amount of the Class A Ordinary Shares issued or issuable in the open market, or the perception that these sales may occur, could cause the market price of our Class A Ordinary Shares to decline or become highly volatile. We may have to pay damages to the Selling Shareholder, which will impact our cash flows. Under the terms of our Securities Purchase Agreement entered into with the Selling Shareholder, if we fail to comply with certain provisions set forth in the agreement,