Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 36

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 36
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 downward pressure on the trading price of FST Ordinary Shares immediately after the Closing of Business Combination. Further, at the Closing, the Sponsors and certain shareholders of FST and certain of their respective affiliates, as applicable, will enter into an investors rights agreement with FST, pursuant to which the Sponsors and the other parties thereto will have customary demand registration rights and piggy -backregistration rights with respect to registration statements filed by FST after the Closing. See the sections of this Prospectus titled “ The Business Combination Agreement and Ancillary Documents — Agreements Entered Into in Connection with the Business Combination — Investor Rights Agreement.” Upon expiration of the applicable lock -upperiod and upon the effectiveness of any registration statement that FST files pursuant to the above -referencedregistration rights agreement, in a registered offering of securities pursuant to the Securities Act or otherwise in accordance with Rule 144 under the Securities Act (subject to the satisfaction of 18 certain conditions), the FST shareholders may sell large amounts of FST Ordinary Shares in the open market or in privately negotiated transactions, which could have the effect of increasing the volatility in the trading price of the FST Ordinary Shares or putting significant downward pressure on the price of the FST Ordinary Shares. The effective prices at which the Sponsors will have acquire the Post -ClosingCompany shares issued in respect of their SPAC Class B Ordinary Shares and Converted SPAC Public Shares in connection with the Business Combination are generally substantially less than the SPAC IPO price. Consequently, after the lock -upperiod, these persons may have an incentive to sell their FST Ordinary Shares even if the trading price at that time is below the SPAC IPO price, which could cause downward pressure on the trading price of the Post -ClosingCompany shares. Further, sales of FST Ordinary Shares upon expiration of the applicable lockup period could encourage short sales by market participants. Generally, short selling means selling a security, contract or commodity not owned by the seller. The seller is committed to eventually purchase the financial instrument previously sold. Short sales are used to capitalize on an expected decline in the security’s price. Short sales of FST Ordinary Shares could have a tendency to depress the price of the FST Ordinary Shares, which could increase the potential for short sales. We cannot predict the size of future issuances of FST Ordinary Shares or the effect, if any, that future issuances and sales of shares of FST Ordinary Shares will have on the market price of the FST Ordinary Shares. Sales of substantial amounts of FST Ordinary