Company: JXG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043744
Chunk: 242

Company: JX Luxventure Group Inc.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 242
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 are convertible to preferred B share which are further convertible to
common stock of the Company. The Preferred Shares are recorded initially at fair value, net of issuance costs.

The fair value of the rights was determined
using a Black-Scholes model. This model requires the input of highly subjective assumptions, including price volatility of the underlying
stock. Changes in the subjective input assumptions can materially affect the estimate of fair value of the rights and the Company’s
results of operations could be impacted. This model is dependent upon several variables such as the instrument’s expected term,
expected strike price, expected risk-free interest rate over the expected instrument term, the expected dividend yield rate over the expected
instrument term, and the expected volatility of the Company’s stock price over the expected term. The expected term represents the
period of time that the instruments granted are expected to be outstanding. The expected strike price is based upon a weighted average
probability analysis of the strike price changes expected during the term as a result of the down round protection. The risk-free rates
are based on U. S. Treasury securities with similar maturities as the expected terms of the options at the date of valuation. Expected
dividend yield is based on historical trends. The Company measures volatility using the volatility rates of market index.

The inputs to the model were as follows:

                                As of the  
  Exercise price                       50  
  Dividend yield                        -  
  Risk-free rate                     1.54  
  Expected term (in years)             10  
  Expected volatility               79.68  

  28.      SHARE CAPITAL AND SHARE PREMIUM  

The number of shares in this Note
28 reflects the 1:10 1:4

The details of the Group’s share
capital are as follows:

 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Shares outstanding as December 31, 2022                                  1,515,834        6,063      77,959,554  
  Face value changes and fractional shares due to reverse stock split           ( 36      ( 5,457           5,457  
  Shares outstanding as December 31, 2023                                  1,515,798          606      77,965,011  
  Shares issued for compensation                                              25,000           10         146,990  
  Conversion of preferred shares                                             706,250          283         847,217  
  Shares outstanding as