Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 108

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1
Chunk 108
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review. The combined company could become subject to enhanced cybersecurity review or investigations launched by PRC regulators in the
future and may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure
to comply.

Additionally, any failure or delay in the completion of the cybersecurity
review procedures or any other non-compliance with the related laws and regulations may result in fines or other penalties, including
suspension of business, website closure, and revocation of prerequisite licenses, as well as reputational damage or legal proceedings
or actions, which may have material adverse effect on the combined company’s business, financial condition or results of operations
and any such action could cause the value of our securities to significantly decline or be worthless.

As uncertainties remain regarding the interpretation and implementation
of these laws and regulations, we cannot assure you that the combined company following a business combination will comply with such regulations
in all respects and it may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. As a result,
both you and we face uncertainty about future actions by the PRC government that could significantly affect our ability to offer or continue
to offer securities to investors and cause the value of our securities to significantly decline or be worthless.

Other PRC governmental authorities may take the view now or in the
future that an approval from them is required for an overseas offering by a company affiliated with Chinese businesses or persons or a
business combination with a target business based in and primarily operating in China.

The M&A Rules, adopted by six PRC regulatory agencies in 2006,
and amended in 2009, require an offshore special purpose vehicle formed for the purpose of an overseas listing of securities in a PRC
company to obtain the approval of the CSRC prior to the listing and trading of such special purpose vehicle’s securities on an overseas
stock exchange. The scope of the M&A Rules covers two types of transactions: (a) equity deals where the acquisition by a foreign investor
(e.g., the offshore special purpose vehicle) of equity in a “PRC domestic company,” and (b) asset deals where the acquisition
by a foreign investor of the assets of a “PRC domestic company.” We do not believe that either the equity or asset deal provisions
of the M&A Rules will be implicated in any of our initial business combination process with a PRC-based target for the reason that
any acquisition will be conducted through a WFOE established by means of direct investment, which would hold