Company: FSHPU
Filing Date: 2025-07-25
Form Type: PRE 14A
Source: 0001829126-25-005363
Chunk: 21

Company: Flag Ship Acquisition Corp
Filing Date: 2025-07-25
Form: PRE 14A
Chunk 21
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 business combination agreement within 12 months from the closing of the IPO to consummate our initial business combination
(as may be extended, the “Combination Period”). As we have entered into the GFT Merger Agreement on April 18, 2025, our
initial Combination Period is through September 20, 2025. However, if we anticipate that we may not be able to consummate our
initial business combination within initial Combination Period, we may, by resolution of the Board if requested by the Sponsor, extend the period of time to consummate a business combination up to nine (9) times, each by an additional one month (for a total of up
to 24 months to complete a business combination), subject to the Sponsor and/or its designee depositing additional funds into the Trust
Account established pursuant to the Trust Agreement by and among the Company, Wilmington Trust, National Association as the Trustee and
VStock Transfer, LLC as the Transfer Agent.

Through this Extension Fee
Reduction Proposal, Flag Ship is proposing that its shareholders amend the Monthly Extension Fee payable by our Sponsor and/or its
designee into the Trust Account to extend the date by which the Company must consummate its initial business combination from $0.033
per Public Share (for each monthly extension) to an amount equal to the lesser of (i) $60,000 for all outstanding Public Shares and
(ii) $0.033 for each outstanding Public Share, for each monthly extension.

To extend the Combination
Period, the first Monthly Extension Fee must be made by September 20, 2025, while each subsequent Monthly Extension Fees must be
deposited into the Trust Account by the 20 of each succeeding month until June 20, 2026. If Proposal 1 is approved, to effectuate each Monthly Extension, the Sponsor and/or its designee will deposit the Amended Monthly Extension
Fee, equal to the lesser of (i) $60,000 for all remaining Public Shares and (ii) $0.033 for each remaining Public Share into the Trust
Account. If the Extension Fee Reduction Proposal is not approved, the ability to extend the Combination Period is contingent upon the
Sponsor depositing the required amount of funds for each monthly extension ($0.033 per Public Share).

The Board’s Reasons for the Extension Fee Reduction Proposal

Under the Extension Fee
Reduction Proposal, the Company is seeking the approval of its shareholders to reduce the amount it must deposit into the Trust
Account to be