Company: MASK
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001185185-25-000685
Chunk: 120

Company: 3 E Network Technology Group Ltd
Filing Date: 2025-06-24
Form: F-1
Chunk 120
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 investment, even if our public shareholders experience a negative rate of return on their investment. As a
result, the Selling Shareholder is able to recognize a greater return on their investment than shareholders that acquired Class A
Ordinary Shares in the public market. Pursuant to the Securities Purchase Agreement and in connection with this offering, (i) up to
10,476,190 Class A Ordinary Shares underlying the Convertible Notes may be issued with the conversion price per share equal to the
lower of US$3.71 or 93% of the lowest daily VWAP in the ten trading days immediately preceding the applicable conversion date, (ii)
up to 4,190,490 Class A Ordinary Shares underlying the Warrants may be issued with the exercise price per share of US$3.71 and (iii)
1,248,611 Pre-Delivery Shares pre-funded warrants to purchase an additional 213,389 Pre-Delivery Shares may be issued at a price per
share equal to 93% of the average of daily VWAPs for the ten trading days immediately preceding such purchase of the Pre-Delivery
Shares. Furthermore, the Selling Shareholder may earn a positive rate of return even if the price of the Class A Ordinary Shares
declines significantly. As a result, the Selling Shareholder may be willing to sell their shares at a price less than shareholders
that acquired their Class A Ordinary Shares in the public market or at higher prices than the price paid by such Selling
Shareholder, the sale of which would result in the Selling Shareholder realizing a significant gain even if other MASK shareholders
experience a negative rate of return.

The conversion of the Convertible Notes,
the exercise of the Warrants or future sales of our Class A Ordinary Shares may further dilute our securities and adversely impact the
price of our Class A Ordinary Shares.

As of the date of this prospectus, approximately
11,250,000 of our Class A Ordinary Shares as unrestricted and freely tradable. Upon the effectiveness of the registration statement of
which this prospectus forms a part, up to an additional 16,128,681 Class A Ordinary Shares will be unrestricted and freely tradeable. If the holders of our free trading shares wanted
to make a profit on their investment (or if they wish to sell for a loss), there might not be enough purchasers to maintain the market
price of our Class A Ordinary Shares on the date of such sales. Any such sales, or the fear of such sales, could substantially decrease
the market