Company: FTII
Filing Date: 2025-04-09
Form Type: 10-K
Source: 0001641172-25-003384
Chunk: 535

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-04-09
Form: 10-K
Item: Item 1
Chunk 535
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a limited availability of market quotations for our securities;

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reduced liquidity for our securities;

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a determination that our shares of common stock are a “penny stock” which will require brokers trading in our shares of common
stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for
our securities;

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a limited amount of news and analyst coverage;

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a decreased ability to issue additional securities or obtain additional financing in the future; and

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the Company may be deemed a less attractive merger partner for a target company or business.

The
“penny stock” rules are burdensome and may reduce the trading activity for shares of the Company’s common stock. For
example, brokers trading in shares of Company’s common stock would be required to deliver a standardized risk disclosure document,
which specifies information about penny stocks and the nature and significance of risks of the penny stock market. The broker dealer
also must provide the customer with bid and offer quotations for the penny stock, the compensation of the broker dealer and any salesperson
in the transaction, and monthly account statements indicating the market value of each penny stock held in the customer’s account.
In addition, the penny stock rules require that, prior to effecting a transaction in a penny stock not otherwise exempt from those rules,
the broker dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive
the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the trading
activity in the secondary market for Company’s common stock, and the holders of shares of Company’s common stock may find
it more difficult to sell their shares.

The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the
sale of certain securities, which are referred to as “covered securities.” Since Company’s common stock and public
warrants are listed on Nasdaq, such securities qualify as covered securities under such statute. Although the states are preempted from
regulating the sale of covered securities, the federal statute does allow the states to investigate companies if there is a suspicion
of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a
particular case. While we are not aware of a state having used these powers to prohibit or restrict the sale of securities issued by
blank check companies, certain state