Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 272

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 272
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 is recoupable by above the third party upon certain minimum sales targets of the games achieved after  
 the game’s launch.                                                                                                              |
| (iii) | The balance of investment payable relates                                                                                       
 to the Company’s investment in Nekcom, and consists of $2,500,000 in cash consideration, which the Company has agreed to        
 pay on or before August 16, 2025.                                                                                               |

Note 16 — Convertible Notes and Derivative Liabilities

From September 30,
2024 to December 2024, the Company, GCL Global, and Epic SG, entered into convertible note purchase agreements (the “Note
Purchase Agreements”) with each of certain accredited investors (the “Transaction Investors”) pursuant to which the
Transaction Investors have agreed to pay GCL Global an aggregate of $33,025,000 for certain convertible notes (the “Note”)
which shall automatically convertible into GCL Global’s fully paid and nonassessable ordinary shares that would be exchanged for
7,338,887 shares of Merger Consideration Shares (as defined in the Merger Agreement) at $4.50 per share at the closing of the transactions
(the “Conversion Date”) contemplated by the Merger Agreement (the “Business Combination”). The number of Merger
Consideration Shares is determined based on the Exchange Ratio established in the Merger Agreement. Pursuant to the Note Purchase Agreements,
an additional thirty percentage (30%) of the number of Merger Consideration Shares issued to the Transaction Investors (the “Bonus
Shares”) will be held in an escrow account for three (3) years from the Conversion Date. At the end of each of the first three
anniversary dates of the Conversion Date (each such year, a “Bonus Year”), one-third (1/3) of the Bonus Shares shall be released
from the escrow account to either the Transaction Investors or to the Company for cancellation, based on the number of Merger Consideration
Shares held by the Transaction Investors at the end of Bonus Year. In the event that the lowest volume-weighted average closing price
of the Merger Consideration Shares is less than $4.50 per share for any ten(10) consecutive trading days during the last month prior
to the third anniversary day of the Conversion Date, the Transaction Investors will be entitled to receive certain Top-Up Shares (defined
in the Note Purchase Agreement) and, under certain limited circumstances, a cash payment, based on the number of Mer