Company: NCL
Filing Date: 2025-11-24
Form Type: PRE 14A
Source: 0001575872-25-000718
Chunk: 52

Company: Northann Corp.
Filing Date: 2025-11-24
Form: PRE 14A
Chunk 52
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 Asia
Resource Shares shall be issued pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act. The Asia
Resource Shares shall constitute restricted securities and will bear a restrictive legend as set out under the Development Agreement.

For a further description of the
Development Agreement, see the Development Agreement filed as Exhibit 10.2 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 713(a) of the NYSE Company Guide, which requires stockholder approval when the
sale, issuance, or potential issuance by the issuer of common stock (or securities convertible into common stock) equal to 20% or more
of presently outstanding stock for less than the Minimum Price. For purposes of this Section 713, “Minimum Price” means a
price that is the lower of the official closing price immediately preceding the signing of the binding agreement or the average official
closing price for the five trading days immediately preceding the signing of the binding agreement. The commentary .02 to the Section
713 states that the exemption from stockholder approval provided for in Section 713(a) for a transaction priced at or above the Minimum
Price is available only for transactions in which the issuer is selling securities for cash at or above the Minimum Price.

The 15,000,000 shares issuable
under the Development Agreement would be more than 20% of the Company’s presently outstanding common stock. While the shares will
be issued at a per share price of $0.40, which is higher than both of the official closing price immediately preceding the signing of
the Development Agreement and the average official closing price for the five trading days immediately preceding the signing of the Development
Agreement, the Company is not issuing the shares for cash in the transactions pursuant to the Development Agreement, when it is only receiving
the Platform development services. Therefore, the exemption from stockholder approval provided for in Section 713(a) for a transaction
priced at or above the Minimum Price is not available to the Company in connection with the Development Agreement. Accordingly, Section
713(a) of the NYSE Company Guide requires that we obtain stockholder approval of the issuance of 15,000,000 shares of common stock to
the designee designated by Asia Resource. We seek your approval of Proposal 6 to issue the 15,000,000