Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 50

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 50
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 public company and
expects to incur significant legal, accounting, and other expenses. For example, as a result of becoming a public company, PubCo will
need to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures.
Operating as a public company will make it more difficult and more expensive for it to obtain director and officer liability insurance,
and PubCo may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar
coverage. In addition, PubCo will incur additional costs associated with its public company reporting requirements. It may also be more
difficult for PubCo to find qualified persons to serve on its board of directors or as executive officers.

After PubCo is no longer an
“emerging growth company,” PubCo may incur significant expenses and devote substantial management effort toward ensuring compliance
with the requirements of Section 404 and the other rules and regulations of the SEC.

If PubCo ceases to qualify as a foreign private issuer, it would be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers, and it would incur significant additional legal, accounting, and other expenses that it would not incur as a foreign private issuer.

As a foreign private issuer,
PubCo will be exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements, and its officers,
directors, and principal shareholders will be exempt from the reporting and short-swing profit recovery provisions contained in Section 16
of the Exchange Act. In addition, it will not be required under the Exchange Act to file periodic reports and financial statements with
the SEC as frequently or as promptly as United States domestic issuers, and it will not be required to disclose in its periodic reports
all of the information that United States domestic issuers are required to disclose. If it ceases to qualify as a foreign private issuer
in the future, it would incur significant additional expenses that could have a material adverse effect on its results of operations.

Because PubCo is a foreign private issuer and is exempt from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if it were a domestic issuer.

PubCo’s status as a foreign
private issuer exempts it from compliance with certain Nasdaq corporate governance requirements if it instead complies with the statutory
requirements applicable to a Cayman Islands exempted company. The statutory requirements of PubCo’s home country of Cayman Islands
do