Company: ILAG
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001493152-25-008217
Chunk: 17

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-02-25
Form: 424B5
Chunk 17
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 must be sold as a condition to completion of this offering, and there can be no assurance that the offering contemplated hereby will ultimately be consummated. Even if we sell securities offered hereby, because there is no minimum offering amount required as a condition to the closing of this offering, the actual offering amount is not presently determinable and may be substantially less than the maximum amount set forth above. We may sell fewer than all of the securities offered hereby, which may significantly reduce the amount of proceeds received by us. Thus, we may not raise the amount of capital we believe is required for our operations in the short-term and may need to raise additional funds, which may not be available or available on terms acceptable to us. There are no refunds available to purchasers of the securities in this offering if less than the maximum amount of securities are sold.

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Risks Related to Our Ordinary Shares

Our dual-class share structure with different voting rights will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Ordinary Shares may view as beneficial.

We have adopted a dual-class share structure such that our shares consist of Ordinary Shares and Preferred Shares. In respect of matters requiring the votes of shareholders, each ordinary share is entitled to one vote and each Series A Preferred Share is entitled to twenty (20) votes. The Series A Preferred Shares may be converted into Ordinary Shares by its holder.

We have authorized 50,000,000 Preferred Shares and our major shareholder, Chairman of the Board and Chief Executive Officer, Mr. Bong Lau owns all of the 2 million issued and outstanding Series A Preferred Shares.

As a result of this dual-class share structure, the holder of our Series A Preferred Shares may have concentrated control over the outcome of matters put to a vote of shareholders and have significant control over our business, including decisions regarding mergers, consolidations, liquidations and the sale of all or substantially all of our assets, election of directors and other significant corporate actions. The holder of Series A Preferred Shares may take actions that are not in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay or prevent a change in control of our company, which could have the effect of depriving our other shareholders of the opportunity to receive a premium for their shares as part of a sale of our company and may reduce the price of the ordinary share. This concentrated control will limit your ability to influence corporate matters and could discourage others from pursuing any potential merger, takeover or other change