Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 205

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 205
---
 StablecoinX, even where those priorities do not align with the interests of its public stockholders. This concentration of risk may result in adverse financial and reputational consequences for our company. See also “— Our business will be significantly dependent on the performance, adoption, and credibility of our ecosystem partners, including the Ethena Foundation and its associated assets. The loss of, or a significant decrease in support from, the Ethena Foundation and its associated assets, could have a material adverse effect on our business, financial condition and results of operations.” Furthermore, unlike a public company or regulated financial institution, the Ethena Foundation is not subject to governance, reporting, or disclosure obligations that would provide us with visibility into its operations, financial condition, or compliance practices. As a result, we have limited visibility into its operations, financial condition, 68 compliance practices, and decision -makingprocesses. Undisclosed vulnerabilities, operational deficiencies, or governance disputes within the Ethena Foundation could have unforeseen consequences for the Ethena Protocol and, by extension, our business and ENA Token holdings. If the Ethena Foundation were to disband, become inactive, or cease maintaining the protocol — whether due to regulatory action, funding shortfalls, or internal conflicts — we could be left dependent on unsupported infrastructure. This could impair our validator operations, reduce the utility of ENA Token, and materially diminish the value of our digital asset treasury. Because our validator business and treasury strategy are designed to align with the Ethena ecosystem, any disruption in the Ethena Foundation’s operations could materially and adversely affect our business, financial condition, and results of operations. We have limited ability to influence the governance of the Ethena Protocol, and future changes may negatively impact our business. Although we expect to hold a large amount of ENA Tokens at least initially, which confer governance rights, we will not control the governance of the Ethena Protocol. Protocol parameters, including collateral requirements, staking rewards, validator eligibility, treasury policies, and fee structures, are determined by decentralized processes and community vote. There is no assurance that future governance decisions will align with our interests or support the continued success of our validator business, infrastructure software and services or treasury strategy. Changes to governance parameters could reduce staking rewards, eliminate validator or infrastructure incentives, modify slashing or participation requirements, or alter treasury or fee policies in ways that undermine the value of our ENA Token holdings or the economics of our infrastructure operations. Further, governance outcomes may be disproportionately influenced by larger token