Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 39

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 39
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 guarantee that our Class A ordinary shares will appreciate in value
or even maintain the price at which you purchased the Class A ordinary shares. You may not realize a return on your investment in our
Class A ordinary shares and you may even lose your entire investment in our Class A ordinary shares.

Techniques employed by short sellers may drive down the market price of our Class A ordinary shares.

Short selling is the practice of selling securities
that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later
date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed
securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the
sale. As it is in the short seller’s interest for the price of the security to decline, many short sellers publish, or arrange for
the publication of, negative opinions regarding the relevant issuer and its business prospects in order to create negative market momentum
and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in
the market.

Public companies listed in the United States that
have a substantial majority of their operations in China have been the subject of short selling. Much of the scrutiny and negative publicity
has centered on allegations of a lack of effective internal control over financial reporting resulting in financial and accounting irregularities
and mistakes, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result,
many of these companies are now conducting internal and external investigations into the allegations and, in the interim, are subject
to shareholder lawsuits and/or SEC enforcement actions.

We may in the future be the subject of unfavorable
allegations made by short sellers. Any such allegations may be followed by periods of instability in the market price of our Class A ordinary
shares and negative publicity. If and when we become the subject of any unfavorable allegations, whether such allegations are proven to
be true or untrue, we could have to expend a significant amount of resources to investigate such allegations and/or defend ourselves.
While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against
the relevant short seller by principles of freedom of speech, applicable federal or state law, or issues of commercial confidentiality.
Such a situation could be costly and time-consuming and could