Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 109

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 109
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 when considering its financial models in its fairness analysis. Even if BLAC conducts thorough due diligence on OSR Holdings’ business, this diligence may not surface all material issues that may be present inside its business. And, regardless of how comprehensive BLAC’s diligence may be, factors outside of the target business and outside of BLAC’s control may arise later. As a result of these factors, New OSR Holdings may be forced to later write -downor write -offassets, restructure its operations, or incur impairment or other charges that could result in New OSR Holdings reporting losses. Even if BLAC’s due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with BLAC’s preliminary risk analysis. Even though these charges may be non -cashitems and not have an immediate impact on New OSR Holdings’ liquidity, the fact that New OSR Holdings reports charges of this nature could contribute to negative market perceptions about New OSR Holdings or New OSR Holdings’ securities. In addition, charges of this nature may cause New OSR Holdings to violate net worth or other covenants to which New OSR Holdings may be subject to by virtue of New OSR Holdings obtaining post -combinationdebt financing. Accordingly, any BLAC stockholders who choose to remain stockholders of New OSR Holdings following the Business Combination could suffer a reduction in the value of their shares of common stock from any such write -downor write -downs. The valuation report of Darnatein prepared by Ghilin Accounting Corp., which was relied upon by the BLAC M&A Committee and Choloc, is based, in part, on an assumption that Darnatein will enter into a $2,000,000,000 licensing deal with a third-party. The valuation report prepared by Ghilin Accounting Corp., which was relied upon by the BLAC M&A Committee and Choloc, was prepared over two years ago, and is based, in part, on an assumption that Darnatein will enter into a $2,000,000,000 licensing deal with a third -party. The assumption is speculative, has not materialized, and may never materialize. The failure of Darnatein to enter into a $2,000,000,000 licensing deal could materially damage Darnatein’s, OSR Holdings’, and New OSR Holdings’ brands, businesses, financial goals, operations and results, all of which could have an adverse impact