Company: GCTS
Filing Date: 2025-05-13
Form Type: S-3/A
Source: 0001104659-25-047808
Chunk: 38

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-05-13
Form: S-3/A
Chunk 38
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arrants will be subject to the same terms and
conditions as the Public Warrants, and among other matters, be redeemable by us and exercisable by the holders on the same basis as the
Public Warrants.

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If holders of the Private
Placement Warrants elect to exercise them on a cashless basis, they would pay the exercise price by surrendering Private Placement Warrants
for that number of shares of Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Common
Stock underlying the Private Placement Warrants, multiplied by the excess of the “sponsor fair market value” (defined below)
over the exercise price of the Private Placement Warrants by (y) the sponsor fair market value. The “sponsor fair market value”
shall mean the average last reported sale price of the Common Stock for the 10 trading days ending on the third trading day prior to
the date on which the notice of exercise is sent to the warrant agent. The reason that we have agreed that these Private Placement Warrants
will be exercisable on a cashless basis so long as they are held by our sponsors and their permitted transferees is because it is not
known at this time whether they will be affiliated with us following a business combination. If they remain affiliated with us, their
ability to sell our securities in the open market will be significantly limited. We have policies in place that prohibit insiders from
selling our securities except during specific periods of time. Even during such periods of time when insiders will be permitted to sell
our securities, an insider cannot trade in our securities if he or she is in possession of material non-public information. Accordingly,
unlike public stockholders who could exercise their Private Placement Warrants and sell the shares of Common Stock received upon such
exercise freely in the open market in order to recoup the cost of such exercise, the insiders could be significantly restricted from
selling such securities. As a result, we believe that allowing the holders to exercise such Private Placement Warrants on a cashless
basis is appropriate.

Anapass Warrants

The holder of Anapass
Warrants has the right to exercise the Anapass Warrant for up to 148,320 shares of Common Stock. The Company is obligated to take all
reasonable actions requested by the Holder to facilitate this exercise, including issuing shares on a certificated or non-certificated
basis and updating our stock records to reflect the issuance of the Common Stock