Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 40

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 40
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5, EWB notified Tekhill that it was in default
under the EWB loan because the collateral coverage under the EWB Loan was less than that required under the terms of the loan. This default
remained uncured as of March 31, 2025, and unless and until cured, EWB could sell some or all of the Newegg Common Shares pledged by Mr.
Chang.

Sales of Newegg Common Shares owned or pledged
by Mr. Chang, Digital Grid or Hangzhou Lianluo, including for the payment of financial or settlement obligations to EWB, BOC or ICBC,
could cause the market price of the Common Shares to drop significantly.

BOC could sell, or force Digital Grid to sell,
some or all of its shares while the BOC loans remain delinquent. EWB could sell, some or all of the Newegg Common Shares pledged
to EWB while the EWB loan remains in default. Mr. Chang or Digital Grid could also choose to voluntarily sell some or all of his or its
shares at any time to satisfy the EWB, BOC or ICBC loans or for other reasons. Any such sale or attempted sale could:

  Occur at a discount to our public trading price and over a short time period;                                                                                                                 
  Result in the loss of minority protective rights currently held by the “ Minority Representative” (as defined in the Company’s Amended and Restated Memorandum and Articles of Association);  
  Result in a change of control of us to the buyer of such shares; or                                                                                                                           
  Result in litigation over the ownership and title to those shares.                                                                                                                            

Each of these risks could cause our share price
to fall significantly, including as described further below.

  BOC could attempt to foreclose upon and sell Digital Grid’s shares in Newegg at any time. EWB could do the same with Mr. Chang’s Newegg Common Shares while the EWB loan remains in default. Any ...  
  If Digital Grid sold some or all of its shares, its ownership percentage in Newegg could drop below 50%, causing it to lose control of our board of directors, leading to a potential change in c...  
  If Mr. Chang sold some or all of his shares, he and the other Legacy Shareholders (as defined in the Company’s Amended and Restated Memorandum and Articles of Association) would hold less of th...  

The market price of our common shares has
been extremely volatile and may continue