Company: ZDAN
Filing Date: 2025-06-30
Form Type: F-1
Source: 0001683168-25-004840
Chunk: 112

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-06-30
Form: F-1
Chunk 112
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 investors to short our Ordinary Shares.
These sales also make it more difficult for us to sell equity-related securities in the future at a time and price that we deem reasonable
or appropriate.

We may be subject to penny stock regulations and restrictions, and you may have difficulty selling our Ordinary Shares.

The SEC has adopted regulations
which generally define so-called “penny stocks” to be an equity security that has a market price of less than $5.00 per share
or an exercise price of less than $5.00 per share, subject to certain exemptions. If our Ordinary Shares become a “penny stock,”
we may become subject to Rule 15g-9 under the Exchange Act, or the “Penny Stock Rule.” This rule imposes additional sales
practice requirements on broker-dealers that sell such securities to persons other than established customers and “accredited investors”
(generally individuals with a net worth of $1,000,000 or annual incomes exceeding $200,000, or $300,000 together with their spouses).
For transactions covered by Rule 15g-9, a broker-dealer must make a special suitability determination for the purchaser’s written
consent to the transaction prior to sale. As a result, this rule may affect the ability of broker-dealers to sell our securities and
may affect the ability of purchasers to sell any of our securities to the secondary market.

For any transaction involving
a penny stock, unless exempt, the rules require delivery, prior to any transaction in a penny stock, of a disclosure schedule prepared
by the SEC relating to the penny stock market. Disclosure is also required to be made about sales commissions payable to both the broker-dealer
and the registered representative and current quotations for the securities. Finally, monthly statements are required to be sent disclosing
recent price information for the penny stock held in the account and information on the limited market in penny stock.

There can be no assurance
that our Ordinary Shares will qualify for exemption from the Penny Stock Rule. In any event, even if our Ordinary Shares were exempt
from the Penny Stock Rule, we would remain subject to Section 15(d)(6) of the Exchange Act, which gives the SEC the authority to restrict
any person from participating in a distribution of penny stock, if the SEC finds that such a restriction would be in the public interest.

If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding the Ordinary Shares, the market price for the Ordinary Shares and