Company: LHI
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006939
Chunk: 196

Company: Living Homeopathy International Ltd.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 196
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 info@ombudsman.ky.

Legislation of the Cayman Islands

The Cayman Islands, together with several other non-European Union jurisdictions, have recently introduced legislation aimed at addressing concerns raised by the Council of the European Union as to offshore structures engaged in certain activities which attract profits without real economic activity. With effect from January 1, 2019, the International Tax Co-operation (Economic Substance) Act (Revised) (the “Substance Act”) came into force in the Cayman Islands introducing certain economic substance requirements for in-scope Cayman Islands entities which are engaged in certain “relevant activities,” which in the case of exempted companies incorporated before January 1, 2019, applies in respect of financial years commencing July 1, 2019, onwards. However, it is anticipated that our Company may remain out of scope of the legislation or else be subject to more limited substance requirements.

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SHARES ELIGIBLE FOR FUTURE SALE</div>

Before Living Homeopathy’s initial public offering, there has not been a public market for Living Homeopathy’s Class A Ordinary Shares, and although the Company intends to apply for listing on the Nasdaq Capital Market, a regular trading market for Living Homeopathy’s Class A Ordinary Shares may not develop. Future sales of substantial amounts of Living Homeopathy’s Class A Ordinary Shares in the public market after Living Homeopathy’s initial public offering, or the possibility of these sales occurring, could cause the prevailing market price for Living Homeopathy’s Class A Ordinary Shares to fall or impair Living Homeopathy’s ability to raise equity capital in the future. Upon completion of this offering, the Company will have [●] Class A Ordinary Shares issued and outstanding. All of the Class A Ordinary Shares sold in this offering will be freely transferable by persons other than Living Homeopathy’s “affiliates” without restriction or further registration under the Securities Act.

Lock-Up Agreements

The Company has agreed to enter into a customary lock-up agreement for a period of six (6) months from the date of the offering, subject to certain exceptions, among others, with respect to any shares of capital stock of the Company or any securities convertible or exchangeable for shares of capital stock of the Company, without the prior written consent of the representatives of the Underwriters. See “Underwriting” beginning on page 123 of this prospectus for more information.

Furthermore, each of Living Homeopathy’s directors, executive officers, and principal shareholders (5% or more