Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 533

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1
Chunk 533
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42 million shares, and on December 19, 2024, the trading price of our Common
Stock ranged from  an intra-day high of $6.20 to an intra-day low of $1.28, on trading volume of approximately 290 thousand
shares. With respect to certain such instances of trading volatility, we are not aware of any material changes in our financial condition
or results of operations that would explain such price volatility or trading volume, which we believe reflect market and trading dynamics
unrelated to our operating business or prospects and outside of our control. We are thus unable to predict when such instances of trading
volatility will occur or how long such dynamics may last. Under these circumstances, we would caution you against investing in our Common
Stock unless you are prepared to incur the risk of incurring substantial losses.

A proportion of our Common
Stock may be traded by short sellers, which may put pressure on the supply and demand for our Common Stock, creating further price volatility.
In particular, a possible “short squeeze” due to a sudden increase in demand of our Common Stock that largely exceeds supply
may lead to sudden extreme price volatility in our Common Stock. Investors may purchase our Common Stock to hedge existing exposure in
our Common Stock or to speculate on the price of our Common Stock. Speculation on the price of our Common Stock may involve long and short
exposures. To the extent aggregate short exposure exceeds the number of shares of Common Stock available for purchase in the open market,
investors with short exposure may have to pay a premium to repurchase our Common Stock for delivery to lenders of our Common Stock. Those
repurchases may in turn dramatically increase the price of our Common Stock until investors with short exposure are able to purchase additional
Common Stock to cover their short position. This is often referred to as a “short squeeze.” Following such a short squeeze,
once investors purchase the shares necessary to cover their short position, the price of our Common Stock may rapidly decline. A short
squeeze could lead to volatile price movements in our shares that are not directly correlated to the performance or prospects of our company
and could cause purchasers of our common shares to incur substantial losses.

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Further, shareholders may
institute securities class action litigation following periods of market volatility. If we were involved in securities litigation, we
could incur substantial costs and our resources, and the attention of management could be diverted from our business.

Our issuance of additional capital stock
in connection with financing, acquisitions, investments, the In