Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 129

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 129
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 discretion, to transfer the investments held in the Trust Account at any time and instead hold all funds in the Trust Account in interest -bearingaccounts, which would further reduce the dollar amount our public stockholders would receive upon any redemption or liquidation of BLAC. If BLAC is deemed to be an investment company under the Investment Company Act, our activities would be severely restricted. In addition, BLAC would be subject to burdensome compliance requirements. BLAC does not believe that our principal activities will subject us to regulation as an investment company under the Investment Company Act. However, if BLAC is deemed to be an investment company and subject to compliance with and regulation under the Investment Company Act, BLAC would be subject to additional regulatory burdens and expenses for which we have not allotted funds. As a result, unless BLAC is able to modify its activities so that BLAC would not be deemed an investment company, we may abandon our efforts to complete an initial business combination and instead liquidate BLAC. If BLAC is required to liquidate, our stockholders will miss the opportunity to benefit from an investment in a target company and the appreciation in value of such investment through an initial business combination. Additionally, if BLAC is required to liquidate, there will be no redemption rights or liquidating distributions with respect to BLAC’s Warrants and Rights, which will expire worthless in the event of BLAC’s winding up. BLAC may be subject to tax liability if OSR Holdings fails to pay its local taxes. Under the Framework Act on National Taxes, if OSR Holdings is unable to meet its national tax obligations with its assets, we will be subject to the secondary tax liability for any taxes accrued during the period we hold our shares in OSR Holdings. Under the Local Tax Act (of Korea), we may also be subject to the secondary tax liability if OSR Holdings fails to pay its local taxes. The secondary tax liability is equal to the amount of unpaid taxes multiplied by our shareholding ratio of OSR Holdings. There is no assurance that we will not be subject to such tax liabilities or that OSR Holdings will have sufficient cash flow to cover such potential tax liabilities. In addition, as of June 30, 2024, OSR Holdings has deferred tax liabilities of approximately $30,292,435, resulting from the differences between book and tax basis for assets acquired or created during previous business combinations as a result of purchase price allocation for accounting purposes, which will be due if and only when certain taxable events occur in the future which will