Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 96

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 96
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 expiration
dates by which a transaction must be completed.

Also, completed transactions must be reported to the MOFCOM and some
of the other agencies within a short period after closing or be subject to an unwinding of the transaction. It is expected that compliance
with the regulations will be more time-consuming than in the past, will be more costly for the Chinese parties, and will permit the government
much more extensive evaluation and control over the terms of the transaction. Subsequent to the promulgation of the Foreign Investment
Law and the relevant implementation rules and regulations, some of the provisions have been replaced or repealed, but there is uncertainty
in interpretation and implementation of the rules and regulations currently in effect. Therefore, a business combination we propose may
not be able to be completed because the terms of the transaction may not satisfy aspects of the approval process and may not be completed,
even if approved, if it is not consummated within the time permitted by the approvals granted.

50

Because the September 8, 2006 M&A Rules permit the government
agencies to have scrutiny over the economics of an acquisition transaction and require consideration in a transaction to be paid within
stated time limits, we may not be able to negotiate a transaction that is acceptable to our stockholders or sufficiently protect their
interests in a transaction.

The regulations have introduced aspects of economic and substantive
analysis of the target business and the acquirer and the terms of the transaction by the MOFCOM and the other governing agencies through
submissions of an appraisal report, an evaluation report and the acquisition agreement, all of which form part of the application for
approval, depending on the structure of the transaction. The regulations also prohibit a transaction at an acquisition price obviously
lower than the appraised value of the PRC business or assets. The regulations require that in certain transaction structures, the consideration
must be paid within strict time periods, generally not in excess of a year. In asset transactions there must be no harm to third parties
and the public interest in the allocation of assets and liabilities being assumed or acquired. These aspects of the regulations will limit
our ability to negotiate various terms of the acquisition, including aspects of the initial consideration, contingent consideration, holdback
provisions, indemnification provisions and provisions relating to the assumption and allocation of assets and liabilities. Transaction
structures involving trusts, nominees and similar entities are prohibited. Therefore, we may not be able to negotiate a transaction with
terms that will satisfy our investors and protect our stockholders