Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 33

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 33
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may be deemed to be an investment company under the Investment Company Act of 1940.

We
may be deemed as an investment company under the Investment Company Act of 1940 (“ 1940 Act

We
are a corporate finance services providers and we principally engage in the provision of corporate finance services. We are not and do
not have any intention to hold ourself out as being engaged primarily, or proposes to engage primarily, in the business of investing,
reinvesting, or trading in securities as defined under the 1940 Act. We, however, may be deemed to be investment company under the 1940
Act if we hold our idle cash in short term time deposits or our investments having value exceeding 40% of the value of our total assets
(exclusive of Government securities and cash items) on an unconsolidated basis. If we were to be classified as an investment company,
we would be subject to significant regulatory requirements and limitations, which could adversely affect our operations, financial condition,
and ability to conduct business and the share price of our Class A ordinary shares. If we were deemed to be an unregistered investment
company, the SEC may bring enforcement actions against the us for violating the 1940 Act and this could include fines, penalties, or
cease-and-desist orders, which could adversely affect our results of operations, our ability to enforce certain contracts, financial
condition, and ability to conduct business and the share price of our Class A ordinary shares.

If
we fail to meet applicable listing requirements, Nasdaq may delist our Class A ordinary shares from trading, in which case the liquidity
and market price of our Class A ordinary shares could decline.

We
cannot assure you that we will be able to meet the continued listing standards of Nasdaq in the future. If we fail to comply with the
applicable listing standards and Nasdaq delists our Class A ordinary shares, we and our shareholders could face significant material
adverse consequences, including :

  a limited availability                                                                                                                   
  reduced                                                                                                                                  
  a                                                                                                                                        
  a                                                                                                                                        
  a                                                                                                                                        

For
instance, on February 28, 2024, we received a letter from the Listing Qualifications staff of Nasdaq notifying the Company that the bid
price of the Company had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result did not comply
with Listing Rule 5550(a)(2). Nasdaq has provided the Company with a