Company: NCL
Filing Date: 2025-12-04
Form Type: 424B3
Source: 0001575872-25-000746
Chunk: 33

Company: Northann Corp.
Filing Date: 2025-12-04
Form: 424B3
Chunk 33
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 of increasing the price of our common stock as reported on NYSE American, therefore allowing us to maintain
compliance with Section 1003(f)(v) of the NYSE Company Guide.

Our Board strongly believes
that the Reverse Split is necessary to maintain our listing on the NYSE American. Accordingly, the Board has proposed the this proposal
for approval by our stockholders at the Annual Meeting to permit the Board to effect the Reverse Split if the Board determines it is
advisable.

Other Effects.

The Board also believes that
the increased market price of our common stock expected as a result of implementing the Reverse Split could improve the marketability
and liquidity of our common stock and will encourage interest and trading in our common stock. The Reverse Split, if effected, could
allow a broader range of institutions to invest in our common stock (namely, funds that are prohibited from buying stock whose price
is below a certain threshold), potentially increasing the trading volume and liquidity of our common stock. The Reverse Split could help
increase analyst and broker’s interest in common stock, as their policies can discourage them from following or recommending companies
with low stock prices. Because of the trading volatility often associated with low-priced stocks, many brokerage houses and institutional
investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual
brokers from recommending low-priced stocks to their customers. Some of those policies and practices may make the processing of trades
in low-priced stocks economically unattractive to brokers. Additionally, because brokers’ commissions on low-priced stocks generally
represent a higher percentage of the stock price than commissions on higher-priced stocks, a low average price per share of our common
stock can result in individual stockholders paying transaction costs representing a higher percentage of their total share value than
would be the case if the share price were higher.

Having an increased number of
authorized but unissued shares of common stock available would provide additional flexibility regarding the potential use of shares of
our common stock for business and financial purposes in the future and allow us to take prompt action with respect to corporate opportunities
that develop, without the delay and expense of convening a special meeting of stockholders for the purpose of approving an increase in
our authorized shares. The additional shares could be used for various purposes without further stockholder approval. These purposes may
include: (i) raising capital, if we have an appropriate opportunity, through offerings of common stock or securities that are convertible
into common stock; (ii