Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 86

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 86
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 of the PRC. As a result, in the
future we may be subject to risks related to the PRC as discussed below.

Although we do not currently operate in the PRC, individuals, including chief financial officer and majority of our directors, have significant ties with the PRC, and the Chinese government could on that basis determine to intervene or influence our operations at any time, which could result in a material change in our operations and/or the value of our common stock or a material adverse effect on our ability to search for, negotiate and complete an initial business combination.

Although we do not currently
operate in the PRC, certain individuals, including the chief financial officer and majority of our directors, have significant ties with
the PRC, and the Chinese government could on that basis determine to intervene or influence our operations at any time, which could result
in a material change in our operations and/or the value of our common stock. In light of recent statements by the Chinese government indicating
an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in companies that it
determines are China-based issuers, if the PRC were to determine that because our sponsor is controlled by individuals with significant
ties to China that our company is a China-based issuer, any such determination could significantly limit or significantly hinder our ability
to offer or continue to offer securities to investors or our ability to search for, negotiate and complete an initial business combination,
and cause the value of our securities to significantly decline or be worthless or results in the liquidation of us without completing
an initial business combination.

We are pursuing an initial business combination with GRT, which
is based in the PRC and the laws and regulations of the PRC may not afford U.S. investors or regulatory agencies access to information
normally available to them with respect to U.S. based entities.

In November 2020,
the SEC Staff issued guidance regarding certain risks and considerations that should be considered by investors regarding foreign
entities, specifically the limited ability of U.S. investors and regulatory agencies to rely upon or obtain information from foreign
based entities, specifically China based entities, under the laws and regulations of such foreign countries. As stated by the SEC
Staff, “[a]lthough China-based Issuers that access the U.S. public capital markets generally have the same disclosure
obligations and legal responsibilities as other non-U.S. issuers, the Commission’s ability to promote and enforce high-quality
disclosure standards for China