Company: MEGL
Filing Date: 2025-06-27
Form Type: F-1/A
Source: 0001641172-25-016831
Chunk: 63

Company: Magic Empire Global Ltd
Filing Date: 2025-06-27
Form: F-1/A
Chunk 63
---
 additional sales practice requirements on broker/dealers who sell these securities to persons other than established Members and accredited investors. For transactions covered by these rules, the broker/dealer must make a special suitability determination for the purchase of these securities. In addition, a broker/dealer must receive the purchaser’s written consent to the transaction prior to the purchase and must also provide certain written disclosures to the purchaser. Consequently, the “penny stock” rules may restrict the ability of broker/dealers to sell our shares, and may negatively affect the ability of holders of shares of our shares to resell them. These disclosures require you to acknowledge that you understand the risks associated with buying penny stocks and that you can absorb the loss of your entire investment. Penny stocks generally do not have a very high trading volume. Consequently, the price of the stock is often volatile and you may not be able to buy or sell the stock when you want to.

If we fail to meet applicable listing requirements, Nasdaq may delist our Class A ordinary shares from trading, in which case the liquidity and market price of our Class A ordinary shares could decline.

We cannot assure you that we will be able to meet the continued listing standards of Nasdaq in the future. If we fail to comply with the applicable listing standards and Nasdaq delists our Class A ordinary shares, we and our shareholders could face significant material adverse consequences, including :

| ● | a                                                                                                                                     
 limited availability of market quotations for our Class A ordinary shares;                                                            |
| ● | reduced                                                                                                                               
 liquidity for our Class A ordinary shares;                                                                                            |
| ● | a                                                                                                                                     
 determination that our Class A ordinary shares are “penny stock”, which would require brokers trading in our Class A                  
 ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading 
 market for our Class A ordinary shares;                                                                                               |
| ● | a                                                                                                                                     
 limited amount of news about us and analyst coverage of us; and                                                                       |
| ● | a                                                                                                                                     
 decreased ability for us to issue additional equity securities or obtain additional equity or debt financing in the future.           |

For instance, on February 28, 2024, we received a letter from the Listing Qualifications staff of Nasdaq notifying the Company that the bid price of the Company had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result did not comply with Listing Rule 5550(a)(2). Nasdaq has provided the Company with a 180 calendar days