Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 236

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 236
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We do not currently operate in the PRC. However, our sponsor and members
of our board of directors and management have significant business ties to the PRC and Hong Kong, and certain members of our board of
directors and management are based in or are residents of the PRC or Hong Kong. Further, as we are pursuing the GRT Business Combination,
we are considering a business combination with an entity or business with a physical presence or other significant ties to the People’s
Republic of China or Hong Kong, and its business is subject to the laws, regulations and policies of the PRC. As a result, in the
future we may be subject to risks related to the PRC as discussed below.

Although we do not currently operate in the PRC, individuals, including chief financial officer and majority of our directors, have significant ties with the PRC, and the Chinese government could on that basis determine to intervene or influence our operations at any time, which could result in a material change in our operations and/or the value of our common stock or a material adverse effect on our ability to search for, negotiate and complete an initial business combination.

Although we do not currently
operate in the PRC, certain individuals, including the chief financial officer and majority of our directors, have significant ties with
the PRC, and the Chinese government could on that basis determine to intervene or influence our operations at any time, which could result
in a material change in our operations and/or the value of our common stock. In light of recent statements by the Chinese government indicating
an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in companies that it
determines are China-based issuers, if the PRC were to determine that because our sponsor is controlled by individuals with significant
ties to China that our company is a China-based issuer, any such determination could significantly limit or significantly hinder our ability
to offer or continue to offer securities to investors or our ability to search for, negotiate and complete an initial business combination,
and cause the value of our securities to significantly decline or be worthless or results in the liquidation of us without completing
an initial business combination.

We are pursuing an initial business combination with GRT, which
is based in the PRC and the laws and regulations of the PRC may not afford U.S. investors or regulatory agencies access to information
normally available to them with respect to U.S. based entities.

In November 2020,
the SEC Staff issued guidance