Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038025
Chunk: 28

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 28
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i) the market value or (ii) the
price at which we issue the additional shares of our Common Stock or equity-linked securities. The “market value” for
this purpose means the volume weighted average trading price of our Common Stock during the 20 trading day period starting on March 25,
2024, the trading day prior to the day on which we consummated the Business Combination.

No
fractional shares will be issued upon exercise of our Warrants. If, upon exercise of our Warrants, a holder would be entitled to receive
a fractional interest in a share, we will, upon exercise, round up to the nearest whole number the number of shares of our Common Stock
to be issued to the Warrant holder.

Convertible Promissory Note

On
February 26, 2024, GCT issued a convertible promissory note (the “Note”) to the Noteholder in the principal amount of
$5,000,000. On or after the earlier of (i) six months from the issuance date of the Note and (ii) the Closing, the
Noteholder may demand the Company to convert all principal and interests due under the Note into shares of Common Stock, at a conversion
price of $10.00 per share. The Note matures on the second anniversary of the issuance date, and bears an interest rate of 5% per
annum. The Note includes customary representations, warranties and events of default, as well as a covenant relating to the performance
of obligations by the Company related to the Company’s 5G activity.

Dividends

We
have not paid any cash dividends on our Common Stock to date and do not intend to pay cash dividends. The payment of cash dividends in
the future will be dependent upon our revenues and earnings, if any, capital requirements and general financial condition. The payment
of any cash dividends will be within the discretion of our Board. Our ability to declare dividends may also be limited by restrictive
covenants pursuant to any debt financing agreements.

Listing of Securities

Our
Common Stock and our Warrants are currently listed on the NYSE under the symbols “GCTS” and “GCTSW,” respectively.

Transfer Agent and Registrar

The
transfer agent and registrar for our Common Stock is Continental Stock Transfer & Trust Company.

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Certain Anti-Takeover Provisions of Delaware Law

Classified Board of Directors

Our
Charter provides that our Board will be divided into three