Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 42

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 42
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A possible “short squeeze” due to a sudden increase in demand of our shares that largely exceeds supply may lead to additional price volatility.

Investors may purchase
shares to hedge existing exposure or to speculate on the price of our shares. Speculation on the price of our shares may involve long
and short exposures. To the extent an aggregate short exposure in our shares becomes significant, investors with short exposure may have
to pay a premium to purchase shares for delivery to share lenders at times if and when the price of our shares increases significantly,
particularly over a short period of time. Those purchases may in turn, dramatically increase the price of our shares. This is often referred
to as a “short squeeze.” A short squeeze could lead to volatile price movements in our shares that are not directly
correlated to our business prospects, financial performance or other traditional measures of value for the Company or its shares.

If you purchase securities in this offering, you may incur immediate and substantial dilution in the book value of your shares.

After giving effect to
the sale of 20,933,333 Class A ordinary shares and Pre-Funded Warrants to purchase 21,566,667 Class A ordinary shares in this offering,
at a public offering price of $0.08 per share, and assuming all Pre-Funded Warrants are exercised, and after deducting the estimated placement
agent discounts and commissions and estimated offering expenses payable by us, purchasers of our shares in this offering will incur immediate
dilution of $0.49 per share in the net tangible book value of the shares they acquire. For a further description of the dilution that
investors in this offering may experience, see “Dilution.” In addition, to the extent that outstanding stock options or warrants
have been or may be exercised or other shares issued, you may experience further dilution.

There is no established public trading market for the Pre-Funded Warrants being offered in this offering, and we do not expect a market to develop for the Pre-Funded Warrants.

There is no established public trading market
for the Pre-Funded Warrants being offered in this offering, and we do not expect a market to develop. In addition, we do not intend to
apply to list the Pre-Funded Warrants on any national securities exchange or other nationally recognized trading system. Without an active
market, the liquidity of the Pre-Funded Warrants will be limited. Further, the existence of the Pre-Funded Warrants may act to