Company: IMG
Filing Date: 2025-12-29
Form Type: PRE 14C
Source: 0001493152-25-029215
Chunk: 15

Company: CIMG Inc.
Filing Date: 2025-12-29
Form: PRE 14C
Chunk 15
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), stockholder approval is required in connection with a transaction, other than a public offering, involving the sale or issuance by a company of common stock (or securities convertible into or exercisable for common stock) at a price that is less than the Nasdaq minimum price if the number of shares issuable equals 20% or more of the company’s outstanding common stock or voting power prior to the issuance.

The transaction described in this Action involves the issuance of Units at a purchase price below the Nasdaq minimum price. Depending on the purchase price determined at the time of issuance, the issuance of such Units may result in the issuance, in the aggregate, of 20% or more of the Company’s outstanding Common Stock or voting power following the closing of the transaction.

Accordingly, stockholder approval is required under Nasdaq Listing Rule 5635(d).

Reasons for the Issuance

The Board believes that the issuance of the Units is in the best interests of the Company and its stockholders because it is expected to provide the Company with access to capital to support its business operations and strategic objectives. The Board further determined that approving the issuance of the Units in advance, notwithstanding that the final pricing and number of securities issuable cannot be determined at this time, is advisable to ensure compliance with Nasdaq Listing Rule 5635(d).

Possible Effects of the Issuance of Securities

If the issuance of the Units is consummated, the Company’s existing stockholders may experience dilution in their ownership interests, voting power, and earnings per share as a result of the issuance of shares of Common Stock and the potential future exercise of the warrants included in the Units.

The exact number of shares of Common Stock to be issued, and the extent of any dilution, cannot be determined at this time because the purchase price and number of Units to be issued will be determined at the time of issuance. Depending on the purchase price determined at the time of issuance, the issuance of the Units may result in the issuance, in the aggregate, of 20% or more of the Company’s outstanding Common Stock or voting power following the closing of the transaction.

In addition, the exercise of the warrants included in the Units, if and when exercised, would result in the issuance of additional shares of Common Stock, which could further dilute the ownership interests of existing stockholders. The exercise of such warrants may also have the effect of depressing the market price of the Company’s Common Stock.

The Board of Directors considered these potential effects and determined that the issuance of the Units