Company: ABTC
Filing Date: 2025-07-29
Form Type: S-4/A
Source: 0001213900-25-068715
Chunk: 92

Company: American Bitcoin Corp.
Filing Date: 2025-07-29
Form: S-4/A
Chunk 92
---
 been no formal demand for return of the PPP Loan proceeds and no formal claim or lawsuit has been initiated against Gryphon. While no formal determination has been made regarding the SBA review of forgiveness of the PPP Loan, there currently exists a risk that the SBA or the DOJ could determine that Gryphon does not qualify in whole or in part for such forgiveness and demand repayment of the PPP Loan. In addition, it is unknown what type of penalties could be assessed against us, if any. Any obligation for Gryphon to repay the PPP Loan and any penalties in addition to such repayment could negatively impact its business, financial condition and results of operations and prospects. Sales of a substantial number of shares of Gryphon Common Stock by Gryphon’s stockholders in the public market could cause Gryphon’s stock price to fall. Sales of a substantial number of shares of Gryphon Common Stock in the public market or the perception that these sales might occur could significantly reduce the market price of Gryphon Common Stock and impair Gryphon’s ability to raise adequate capital through the sale of additional equity securities. As of March 31, 2025, Gryphon had outstanding a total of approximately 69,985,037shares of common stock. Of these shares, approximately 51.3 million shares of common stock are freely tradable, without restriction, in the public market, unless they are purchased by one of Gryphon’s affiliates. Sales of these shares or perceptions that they will be sold, could cause the trading price of Gryphon Common Stock to decline. Future sales and issuances of Gryphon Common Stock or rights to purchase common stock, including in connection with Gryphon’s equity incentive plan, could result in dilution of the percentage ownership of its stockholders and could cause Gryphon’s stock price to fall. Additional capital will be needed to continue Gryphon’s operations. To the extent Gryphon raises additional capital by issuing equity securities, its stockholders may experience substantial dilution. The Merger Agreement contains restrictions on, among other things, the ability of Gryphon to issue Gryphon Common Stock without the consent of ABTC. Under the Merger Agreement, Gryphon is permitted to utilize its ATM program to a limited extent, and ABTC may grant consent for further issuances of Gryphon Common Stock and use of the ATM program. Subject to the terms of the Merger Agreement, Gryphon may sell common stock, convertible securities or other equity securities in one or more transactions at prices and in a manner it determines from time to time. If Gryphon sells