Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 63

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 63
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and higher costs necessitated by ongoing revisions to disclosure and governance practices. These laws and regulations may increase our
legal and financial compliance costs and render our certain business activities more time-consuming and costly.

Members of our management team
have limited experience managing a publicly traded company, interacting with public company investors and complying with the increasingly
complex laws pertaining to public companies. Our management team may not successfully or efficiently manage the transition to being a
public company subject to significant regulatory oversight and reporting obligations under the federal securities laws and regulations
and the continuous scrutiny of securities analysts and investors. The need to establish the corporate infrastructure demanded of a public
company may divert the management’s attention from implementing our growth strategy, which could prevent the improvement of our
business, financial condition and results of operations. Furthermore, these rules and regulations may make it more difficult and more
expensive for us to obtain director and officer liability insurance, and consequently we may be required to incur substantial costs to
maintain the same or similar coverage. These additional obligations could have a material adverse effect on our business, financial condition,
results of operations and prospects. These factors could also make it more difficult to attract and retain qualified members of our board
of directors, particularly to serve on our audit committee, compensation committee and nominating committee, and qualified executive officers.

As a result of disclosure of
information in the prospectus we filed in connection with the Business Combination, this prospectus and filings required of a public company,
our business and financial condition has and will become more visible, which we believe may result in threatened or actual litigation,
including by competitors and other third parties. If such claims are successful, our business and results of operations could be adversely
affected, and, even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary
to resolve them, could cause an adverse effect on our business, financial condition, results of operations, prospects and reputation.

Recent market volatility could impact the share price and trading volume of our securities.

The trading market for our
securities could be impacted by recent market volatility. Recent stock run-ups, divergences in valuation ratios relative to those seen
during traditional markets, high short interest or short squeezes, and strong and atypical retail investor interest in the markets may
impact the demand for the Ordinary Shares.

A possible “short squeeze”
due to a sudden increase in demand of the Ordinary Shares that largely exceeds supply may lead to price volatility in the Ordinary Shares.
Investors