Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 198

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 198
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 Company consummated the previously announced Business Combination contemplated by the Business Combination Agreement. Pursuant to
the Business Combination Agreement, the Business Combination was completed in four steps: (i) at the Closing Date, each SPAC Unit outstanding
immediately prior to the Closing Date was automatically detached, and the holder thereof was deemed to hold one (1) SPAC Class A Ordinary
Share and one-half (1/2) of a SPAC Warrant in accordance with the terms of the applicable SPAC Unit; (ii) each SPAC Class B Ordinary Share
that was issued and outstanding immediately prior to the Closing Date was automatically converted into one (1) SPAC Class A Ordinary Share
in accordance with the terms of the SPAC Articles (such automatic conversion, the “ SPAC Class B Conversion”); (iii)  each
SPAC Class A Ordinary Share (which, for the avoidance of doubt, includes the SPAC Class A Ordinary Shares (A) issued in connection with
the SPAC Class B Conversion and (B) held as a result of the unit separation) that was issued and outstanding was cancelled in exchange
for the right to receive one (1) CayCo Ordinary Share; and (iv)  each SPAC Warrant that was outstanding and unexercised was converted
into and become the right to receive a CayCo Warrant, which is on the same terms and conditions as the applicable SPAC Warrant. Unless
otherwise defined herein, capitalized terms used herein are defined in the Business Combination Agreement.

In connection with the closing of the Business
Combination, FST Merger Ltd. merged with and into Chenghe with Chenghe being the surviving company and as a direct, wholly owned subsidiary
of the Company, and Chenghe changed its name to “ FST Ltd.”, the Company’s Ordinary Shares commenced trading on the Nasdaq
Global Market under the symbol “ KBSX” on January 16, 2025.

The Group is in the process of evaluating the
accounting treatment of the Business Combination. The Group expected the Business Combination will be accounted for as a reverse merger
in accordance with GAAP. Under this method of accounting, Chenghe will be treated as the “acquired” company for financial
reporting purposes. This determination was primarily based on the Company’s shareholders expecting to have a majority of the voting
power of the combined company, the Company comprising the ongoing operations of the combined entity, the Company comprising a majority
of