Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 37

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 37
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 and costly.

Members of our management
team have limited experience managing a publicly traded company, interacting with public company investors and complying with the increasingly
complex laws pertaining to public companies. Our management team may not successfully or efficiently manage the transition to being a
public company subject to significant regulatory oversight and reporting obligations under the federal securities laws and regulations
and the continuous scrutiny of securities analysts and investors. The need to establish the corporate infrastructure demanded of a public
company may divert the management’s attention from implementing our growth strategy, which could prevent the improvement of our
business, financial condition and results of operations. Furthermore, these rules and regulations may make it more difficult and more
expensive for us to obtain director and officer liability insurance, and consequently we may be required to incur substantial costs to
maintain the same or similar coverage. These additional obligations could have a material adverse effect on our business, financial condition,
results of operations and prospects. These factors could also make it more difficult to attract and retain qualified members of our board
of directors, particularly to serve on our audit committee, compensation committee and nominating committee, and qualified executive officers.

Recent market volatility could impact the
share price and trading volume of our securities.

The trading market for our
securities could be impacted by recent market volatility. Recent stock run-ups, divergences in valuation ratios relative to those seen
during traditional markets, high short interest or short squeezes, and strong and atypical retail investor interest in the markets may
impact the demand for the Ordinary Shares.

A possible “short squeeze”
due to a sudden increase in demand of the Ordinary Shares that largely exceeds supply may lead to price volatility in the Ordinary Shares.
Investors may purchase the Ordinary Shares to hedge existing exposure or to speculate on the price of the Ordinary Shares. Speculation
on the price of the Ordinary Shares may involve both long and short exposures. To the extent aggregate short exposure exceeds the number
of the Ordinary Shares available for purchase, investors with short exposure may have to pay a premium to repurchase the Ordinary Shares
for delivery to lenders. Those repurchases may in turn, dramatically increase the price of the Ordinary Shares. This is often referred
to as a “short squeeze.” A short squeeze could lead to volatile price movements in the Ordinary Shares that are not directly
correlated to the operating performance.

It is not expected that we will pay dividends
in the foreseeable future.

It is expected that we will
retain most, if not all, of our available funds and any future earnings