Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 43

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 43
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, in its discretion, whether or not the consent of Penguin Solutions Cayman shareholders should be sought at a further meeting of Penguin Solutions Cayman shareholders. Similarly, if a modification, addition or condition is put forward which, in the opinion of the Penguin Solutions Cayman Board, is of such a nature or importance as to require the approval of Penguin Solutions Cayman shareholders at a further meeting of Penguin Solutions Cayman shareholders, the Penguin Solutions Cayman Board will not take the necessary steps to enable the Scheme of Arrangement to become effective unless and until such shareholder approval is obtained by the Penguin Solutions Cayman shareholders. In addition, it is likely that Penguin Solutions Cayman may determine to terminate the Scheme of Arrangement and not proceed with the Transaction if any condition, modification or amendment is imposed on us that is adverse to Penguin Solutions Cayman and its shareholders. Please see “The Scheme of Arrangement Proposal—The Scheme of Arrangement—Court Sanction of the Scheme of Arrangement.” The market for the Penguin Solutions Delaware common stock may differ from the market for the Penguin Solutions Cayman ordinary shares and the market price of Penguin Solutions Delaware common stock may as a result be subject to volatility. We expect to list the Penguin Solutions Delaware common stock on Nasdaq under the symbol “PENG,” the same trading symbol as the Penguin Solutions Cayman ordinary shares. The market price, trading volume or volatility, or potential investor pool of the Penguin Solutions Delaware common stock may be different from those of the Penguin Solutions Cayman ordinary shares. 24

As a result, the market price of Penguin Solutions Delaware common stock could be subject to
wide fluctuations, which may be unrelated to the Penguin Solutions group of companies’ operating performance and prospects but nevertheless affect the price of Penguin Solutions Delaware common stock. This volatility may affect the ability of
holders of Penguin Solutions Delaware common stock to sell their shares at an advantageous price.

The Transaction may adversely impact our effective tax rate.

Although we do not expect the Transaction to increase our effective tax rate, there is a risk that our effective tax rate
may increase after the Transaction. Following the Transaction, our effective tax rate may change significantly, which could materially impact our financial results, including our earnings and cash flow, for periods after the Transaction, and may
fluctuate significantly from period to period. Our effective tax rate is based upon the application of currently applicable income tax laws, regulations and treaties, as well as current judicial and administrative interpretations of these income tax
laws, regulations and treaties in various jurisdictions, including other than the