Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 270

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 270
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 of our Ordinary Shares.
Specifically, the Underwriter may sell more Ordinary Shares than it is obligated to purchase under the underwriting agreement, creating
a short position. A short sale is covered if the short position is no greater than the number of Ordinary Shares available for purchase
by the Underwriter under option to purchase additional Ordinary Shares. The Underwriter can close out a covered short sale by exercising
the option to purchase additional Ordinary Shares or purchasing Ordinary Shares in the open market. In determining the source of Ordinary
Shares to close out a covered short sale, the Underwriter will consider, among other things, the open market price of Ordinary Shares
compared to the price available under the option to purchase additional Ordinary Shares. The Underwriter may also sell Ordinary Shares
in excess of the option to purchase additional Ordinary Shares, creating a naked short position. The Underwriter must close out any naked
short position by purchasing Ordinary Shares in the open market. A naked short position is more likely to be created if the Underwriter
is concerned that there may be downward pressure on the price of the Ordinary Shares in the open market after pricing that could adversely
affect investors who purchase in the offering.

The Underwriter may also
impose a penalty bid. This occurs when an underwriter or dealer repays selling concessions allowed to it for distributing our Ordinary
Shares in this offering because such underwriter repurchases those Ordinary Shares in stabilizing or short covering transactions.

Finally, the Underwriter
may bid for, and purchase, our Ordinary Shares in market making transactions, including “passive” market making transactions
as described below.

These activities may stabilize
or maintain the market price of our Ordinary Shares at a price that is higher than the price that might otherwise exist in the absence
of these activities. The Underwriter is not required to engage in these activities, and may discontinue any of these activities at any
time without notice. These transactions may be effected on Nasdaq Stock Market, in the over-the-counter market, or otherwise.

Passive Market Making

In connection with this
offering, the Underwriter may engage in passive market making transactions in our Ordinary Shares on Nasdaq in accordance with Rule 103
of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the Ordinary Shares and extending
through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent
bid of that security. However, if all independent bids are lowered