Company: NCL
Filing Date: 2025-11-24
Form Type: PRE 14A
Source: 0001575872-25-000718
Chunk: 50

Company: Northann Corp.
Filing Date: 2025-11-24
Form: PRE 14A
Chunk 50
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, which requires stockholder approval in connection with an acquisition of the or assets of
another company if the NYSE American-listed company will issue more than 20% of its then outstanding common stock. The 12,500,000 shares
issuable under the Asset Purchase Agreement would result in an increase in the Company’s outstanding common stock of over 20%. Accordingly,
we seek your approval of Proposal 5 to issue 12,500,000 shares of common stock to acquire the Software, asset of Kingsford, under the
Asset Purchase Agreement in order to satisfy the requirements of NYSE American Rule 712(b).

Effect on Current Stockholders; Dilution

The Asset Purchase Agreement
does not affect the rights of the holders of outstanding common stock, but the issuance of the Kingsford Shares pursuant to the
terms of the Asset Purchase Agreement will have a dilutive effect on our existing stockholders, including the voting power and the
economic rights of the existing stockholders.

The availability for sale of
a large amount of shares issuable under the Asset Purchase Agreement may significantly depress the market price of our common stock
and, going forward, may impair our ability to raise additional capital through the public sale of our common stock. We do not have
any arrangement with Kingsford, the other party to the Asset Purchase Agreement, to address the possible effect on the price of our
common stock of the sale by Kingsford’s designee of their shares.

No Dissenters Rights

Our stockholders are not entitled
to dissenters’ rights with respect to this Proposal 5, and we will not independently provide stockholders with any such right.

Effect of Failure to Obtain Stockholder Approval

If the stockholders do not approve
this Proposal 5 at the Annual Meeting, the Company may hold another stockholder meeting to seek approval.

Required Vote of Stockholders

The affirmative vote of the holders
of a majority of the votes cast is required to approve Proposal 5. Abstentions will have no effect on the outcome of Proposal 5 and broker
non-votes will not be counted as votes cast and, accordingly, will not have an effect on Proposal 5. This Proposal 5 will be considered
“non-routine” by the NYSE American and, because brokers will not have discretionary authority to vote on Proposal 5, we expect
broker non-votes in connection with this proposal.

Recommendation of the Board of Directors

OUR BOARD unanimously recommends a vote “ FOR” THE ISSUANCE OF