Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 32

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 32
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 price of our shares may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

  actual                                                                                                                                
  the                                                                                                                                   
  actions                                                                                                                               
  announcements                                                                                                                         
  price                                                                                                                                 
  lawsuits                                                                                                                              
  other                                                                                                                                 

In
addition, our shares may be subject to rapid and substantial price volatility. Such volatility, including any stock-run up, may be unrelated
to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to
assess the rapidly changing value of our shares. Recently, companies with comparably small public floats and initial public offering
sizes have experienced instances of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was
seemingly unrelated to the respective company’s actual or expected operating performance and financial condition or prospects.
Although the specific cause of such volatility is unclear, our anticipated public float may amplify the impact the actions taken by a
few shareholders have on the price of our shares, which may cause our share price to deviate, potentially significantly, from a price
that better reflects the underlying performance of our business. As a relatively small-capitalization company with relatively small public
float, our shares may experience greater stock price volatility, extreme price run-ups and declines that may be unrelated to our actual
or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly
changing value of our shares. Further, investors in our shares may experience losses, which may be material, if the price of our shares
declines or if such investors purchase our shares prior to any price decline. Moreover, in the past, shareholders
have filed securities class action litigation following periods of market volatility. If we were to become involved in securities litigation,
it could subject us to substantial costs, divert resources and the attention of management from our business, and adversely affect our
business.

Volatility
in our shares price may subject us to securities litigation.

The
market for our shares may have, when compared to seasoned issuers, significant price volatility and we expect that our share price may
continue to be more volatile than that of a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities
class action litigation against a company following periods of volatility in the market price of its securities. We may, in the future,
be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s
attention and resources.

We