Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 202

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 202
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 penalties or slashing, and materially harm our business, financial condition, and results of operations. Our custodians have limited insurance protection which exposes us and our shareholders to the risk of loss of our ENA Token for which no person is liable. We do not expect to maintain insurance coverage for our ENA Token holdings outside of the limited insurance policies that our custodians carry for client wallets. Therefore, a loss may be suffered with respect to our ENA Token that is not covered by insurance and for which no person is liable in damages, which could adversely affect our operations and, consequently, an investment in us. Our future custodians may maintain certain insurance coverage of such types and amounts as they assert to be commercially reasonable for their custodial services provided under our custody agreements with them, including certain commercial crime insurance of limited aggregate principal amount which covers losses stemming from fraud, security breach, hack and asset theft. However, such insurance coverage may be insufficient to protect us against all losses of our ENA Token holdings held in custody with our custodians, whether or not stemming from security breaches, cyberattacks or other types of unlawful activity. Therefore, a loss may be suffered with respect to our ENA Token that is not covered by insurance and for which no person is liable in damages, which could adversely affect our operations and, consequently, an investment in us. We face other risks related to our ENA Token focused treasury reserve business model. Our ENA Token focused treasury reserve business model exposes us to various risks, including the following: •ENA Token and other digital assets are subject to significant legal, commercial, regulatory, and technical uncertainty, and our ENA Token focused treasury strategy subjects us to enhanced regulatory oversight. •Changes in political administration may not guarantee a favorable regulatory environment for ENA Token. •Regulatory changes could impact our ability to operate validators or receive rewards. •Regulatory scrutiny of the Company’s activities may increase, potentially limiting our operations. •Potential litigation risks exist related to smart contract vulnerabilities, validator operations, or our business activities. •Future SEC actions or court decisions could classify ENA Token as a security, potentially leading to being determined to be an unregistered investment company, which could lead to penalties, forced unwinding of transactions or lawsuits alleging violations of U.S. securities law. •Our operations may be subject to enhanced scrutiny and compliance requirements if ENA Token is classified as a security in the future. •If our ENA Token holdings and infrastructure activities are deemed to meet the definition of an “investment company”