Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 70

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 70
---
 of the brand change. As a result, we may have to incur costs relating to the opening, operation and promotion of our hotel properties
that are substantially greater than those incurred in other geographic areas. Our hotels may attract fewer customers than expected and
we may choose to increase spending on advertising and marketing to promote the hotel and increase customer demand. Unanticipated
expenses and insufficient demand could adversely affect our financial performance.

Risks relating
to the management of our hotels could hurt our financial performance.

Our hotel managers have the
authority to direct our hotels to be operated in a particular manner and to govern the daily operations of our hotels.
As a result, our financial condition and results of operations are largely dependent on the ability of our hotel managers to operate
our hotel properties successfully. Any failure by our hotel managers to provide quality services and amenities or to maintain
and protect a quality brand name and reputation could have a negative impact on their ability to operate and manage our hotel properties
successfully and could negatively impact our financial condition and results of operations.

We cannot assure you that
our hotel managers will operate and manage our hotel properties in a manner that is consistent with their obligations
under the hotel management agreements, that our hotel managers will not be negligent in their performance or engage in
other criminal or fraudulent activity, or that they will not otherwise default on their management obligations to us. If we are unable
to reach satisfactory results through discussions and negotiations with our hotel managers regarding issues with the management of our
hotels, we may choose to litigate the dispute or submit the matter to third-party dispute resolution or arbitration. We would be able
to seek redress only if a hotel manager violates the terms of the applicable hotel management agreement, and then only to the
extent of the remedies provided for under the terms of the hotel management agreement. Additionally, in the event we need to replace
any of our hotel managers, we may experience significant business disruptions at the affected hotel properties, and may
be liable, under certain circumstances, for significant damages and/or be required to make certain payments to our managers.

Risks Relating to Our
Securities

The Warrants are
exercisable for Class A Ordinary Shares, which would increase the number of shares eligible for future resale in the public market
and result in dilution to our shareholders. The Warrants may never be in the money, and they may expire worthless.

Warrants to purchase an aggregate
of 16,220,000 Class A Ordinary Shares are exercisable in accordance with the