Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 100

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 100
---
 for failure to seek CSRC, CAC approval.
These sanctions may include fines and penalties on our operations in China, limitations on our operations in China, delays in or restrictions
on the repatriation of the proceeds from this offering into the PRC, restrictions on or prohibition of the payments or remittance of dividends
by our subsidiaries in China, or other actions that could have a material adverse effect on our business, financial condition, results
of operations, reputation, prospects, the trading price of our Class A Ordinary Shares, and the ability to offer the securities being
registered to foreign investors.

<div align='center'>9</div>

On August 8, 2006, six PRC regulatory agencies
jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which
came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules requires that an offshore special
purpose vehicle formed for overseas listing purposes and controlled directly or indirectly by the PRC Citizens shall obtain the approval
of the CSRC prior to overseas listing and trading of such special purpose vehicle’s securities on an overseas stock exchange. Based
on our understanding of the Chinese laws and regulations in effect at the time of this prospectus, we will not be required to submit an
application to the CSRC for its approval of this offering and the listing and trading of our ordinary shares on the Nasdaq under the M&A
Rules. However, there remains some uncertainty as to how the M&A Rules will be interpreted or implemented, and the opinions of our
PRC counsel summarized above are subject to any new laws, rules and regulations or detailed implementations and interpretations in any
form relating to the M&A Rules. We cannot assure you that relevant Chinese government agencies, including the CSRC, would reach the
same conclusion.

Recently, the General Office of the Central Committee
of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Strictly Cracking Down on Illegal
Securities Activities, which were made available to the public on July 6, 2021. The Opinions on Strictly Cracking Down on Illegal
Securities Activities emphasized the need to strengthen the administration over illegal securities activities, and the need to strengthen
the supervision over overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory
systems will be taken to deal with the risks and incidents