Company: FGI
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001628280-25-020349
Chunk: 17

Company: FGI Industries Ltd.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 17
---
 approval of the shareholders.

The Board believes that shareholder approval of an exchange ratio range (rather than an exact exchange ratio) in connection with the Reverse Split Proposal provides the Board with maximum flexibility to achieve the purposes of any such reverse share split that may be effected. If shareholders approve the Reverse Split Proposal, a reverse share split will only be effected, if at all, upon a determination by the Board, or any duly constituted committee thereof, that a reverse share split is in the Company’s and the shareholders’ best interests at that time. In connection with any determination to effect a reverse share split, the Board or any duly constituted committee thereof, will set the time for such a split and select a specific exchange ratio within the approved range by approving resolutions and filing an extract of the relevant shareholders’ minutes and directors’ resolution with the Registrar of Companies in the Cayman Islands informing them of the share split ratio and the resulting change in the number of authorized ordinary shares and the par value (such date, the “Effective Time”). The determination will be made by the Board with the intention to create the greatest marketability of the Company’s ordinary shares based upon prevailing market conditions at that time. The Board reserves its right to elect not to proceed, and abandon, any reverse share split if it determines, in its sole discretion, that implementing such reverse share split is not in the best interests of the Company and its shareholders.

Any one director or officer of the Company is to be authorized, for and on behalf of the Company, to do all such other

acts or things necessary or desirable to implement, carry out, and give effect to the Reverse Share Split, if and when deemed advisable by the Board in its sole discretion.

#### Purpose
The purpose for seeking approval to effect the reverse share split is to increase the market price of our ordinary shares. The Company believes that effecting one or more reverse share splits will help achieve compliance with the minimum bid price requirement for continued inclusion on The Nasdaq Stock Market (“Nasdaq”) under Nasdaq Listing Rule 5550(a)(2) (“Rule 5550(a)(2)”) . On September 6, 2024, the Company received written notification from the New York Stock Exchange indicating that Company is not in compliance with the continued listing requirement in Rule 5550(a)(2) . We cannot assure you that, following any reverse share split, we will be able to maintain the required minimum bid price required for continued listing on Nasdaq. Also, we cannot assure you that an active and liquid public