Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 263

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 263
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 as in the case of a liquidating distribution.

The grant of registration rights to our initial stockholders may
make it more difficult to complete our initial business combination, and the future exercise of such rights may adversely affect the market
price of our Class A common stock.

Our initial stockholders and their permitted transferees can demand
that we register the resale of the Private Placement Warrants, the shares of Class A common stock issuable upon exercise of the Private
Placement Warrants and the shares of Class A common stock issuable upon conversion of the Founder Shares, and holders of warrants that
may be issued upon conversion of working capital loans may demand that we register the resale of such Class A common stock, warrants or
the Class A common stock issuable upon exercise of such warrants. We will bear the cost of registering these securities. The registration
and availability of such a significant number of securities for trading in the public market may have an adverse effect on the market
price of our Class A common stock. In addition, the existence of the registration rights may make our initial business combination costlier
or difficult to complete. This is because the stockholders of the target business may increase the equity stake they seek in the combined
entity or ask for more cash consideration to offset the negative impact on the market price of our Class A common stock that is expected
when the securities owned by our initial stockholders or holders of working capital loans or their respective permitted transferees are
registered.

Because we are neither limited to evaluating a target business in
a particular industry sector nor have we selected any specific target businesses with which to pursue our initial business combination,
you will be unable to ascertain the merits or risks of any particular target business’s operations.

We will seek to complete an initial business combination with companies
in the IoT industry or adjacent industry but may also pursue other business combination opportunities, except that we will not, under
our Certificate of Incorporation, be permitted to effectuate our initial business combination with another blank check company or similar
company with nominal operations. Because we have not yet selected or approached any specific target business with respect to a business
combination, there is no basis to evaluate the possible merits or risks of any particular target business’s operations, results
of operations, cash flows, liquidity, financial condition or prospects. To the extent we complete our initial business combination, we
may be affected by numerous risks inherent in the business operations with which we combine. For example, if we combine with a financially
unstable business or an