Company: NCL
Filing Date: 2025-12-04
Form Type: DEF 14A
Source: 0001575872-25-000744
Chunk: 50

Company: Northann Corp.
Filing Date: 2025-12-04
Form: DEF 14A
Chunk 50
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 approval
of the issuance of the Kingsford Shares by the Company’s stockholders and the NYSE American. Kingsford represented and warranted,
amongst others, that neither Kingsford nor its designee is an affiliate of the Company, and that the Kingsford Shares are being acquired
for investment purposes only, without a view to distribution, and in compliance with all applicable securities laws.

The Kingsford Shares shall be
issued pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act. The Kingsford Shares shall constitute
restricted securities and will bear a restrictive legend as set out under the Asset Purchase Agreement.

For a further description of the
Asset Purchase Agreement, see Asset Purchase Agreement filed as Exhibit 10.1 to the Company’s current report on Form 8-K filed on
November 24, 2025.

Why Approval is Needed and Proposed Use of Funds

Our common stock is currently listed on the NYSE American. We are subject
to Section 712(b) of the NYSE Company Guide, which requires stockholder approval in connection with an acquisition of the or assets of
another company if the NYSE American-listed company will issue more than 20% of its then outstanding common stock. The 12,500,000 shares
issuable under the Asset Purchase Agreement would result in an increase in the Company’s outstanding common stock of over 20%. Accordingly,
we seek your approval of Proposal 5 to issue 12,500,000 shares of common stock to acquire the Software, asset of Kingsford, under the
Asset Purchase Agreement in order to satisfy the requirements of NYSE American Rule 712(b).

Effect on Current Stockholders; Dilution

The Asset Purchase Agreement
does not affect the rights of the holders of outstanding common stock, but the issuance of the Kingsford Shares pursuant to the
terms of the Asset Purchase Agreement will have a dilutive effect on our existing stockholders, including the voting power and the
economic rights of the existing stockholders.

The availability for sale of
a large amount of shares issuable under the Asset Purchase Agreement may significantly depress the market price of our common stock
and, going forward, may impair our ability to raise additional capital through the public sale of our common stock. We do not have
any arrangement with Kingsford, the other party to the Asset Purchase Agreement, to address the possible effect on the price of our
common stock of the sale by Kingsford’s designee of their shares.

No Dissenters Rights