Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 336

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 336
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 guarantee in game development for game            
 publishing operations. Such balance is recoupable by above the third party upon certain minimum 
 sales targets of the games achieved after the game’s launch.                                    |

<div align='center'>F-84

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

Note 12 — Advance proceeds from convertible notes

From
September 30, 2024 to December 2024, GCL Global Holdings Ltd (“PubCo”), the Company, and Epic SG, entered into
convertible note purchase agreements (the “Note Purchase Agreements”) with each of certain accredited investors (the
“Transaction Investors”) pursuant to which the Transaction Investors have agreed to pay the Company an aggregate of
$30,025,000 for certain convertible notes (the “Note”) which shall be convertible into the Company’s fully paid
and nonassessable ordinary shares that would be exchanged for 6,672,221 shares of Merger Consideration Shares (as defined in the
Merger Agreement) at $4.50 per share at the closing of the transactions (the “Conversion Date”) contemplated by the
Merger Agreement (the “Business Combination”). The number of Merger Consideration Shares is determined based on the
exchange ratio established in the Merger Agreement. Pursuant to the Note Purchase Agreements, an additional thirty percentage (30%)
of the number of Merger Consideration Shares issued to the Transaction Investors (the “Bonus Shares”) will be held in an
escrow account for three (3) years from the Conversion Date. At the end of each of the first three anniversary dates of the
Conversion Date (each such year, a “Bonus Year”), one-third (1/3) of the Bonus Shares shall be released from the escrow
account to either the Transaction Investors or to the Company for cancellation, based on the number of Merger Consideration Shares
held by the Transaction Investors at the end of Bonus Year. In the event that the lowest volume-weighted average closing price of
the Merger Consideration Shares is less than $4.50 per share for any ten(10) consecutive trading days during the last month
prior to the third anniversary day of the Conversion Date, the Transaction Investors will be entitled to receive certain Top-Up
Shares (defined in the Note Purchase Agreement) and, under certain limited circumstances, a cash payment, based on the number of