Company: GULTU
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001201
Chunk: 7

Company: Gulf Coast Ultra Deep Royalty Trust
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 7
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 and resale price
of the Royalty Trust units.

The
Royalty Trust units are quoted on the OTC Pink tier of the over-the-counter (OTC) markets. The OTC Pink is a significantly more limited
market than the national securities exchanges, which could adversely affect the market price, trading volume, liquidity and resale price
of the Royalty Trust units.

Meanwhile,
an active market in the Royalty Trust units may not continue at present levels or increase in the future. In addition, securities that
trade on the OTC Pink experience more volatility compared to securities that trade on a national securities exchange. This volatility
may be caused by a variety of factors, including the lack of readily available price quotations, the absence of consistent administrative
supervision of bid and ask quotations, lower trading volumes, and market conditions.

Because
there is a limited public market for the Royalty Trust units, the market price and trading volume of the Royalty Trust units may be volatile.

The
Royalty Trust unitholders may experience fluctuations in the market price and volume of the trading market for the Royalty Trust units
for many reasons, including, without limitation:

  as a result of other risk factors discussed                                                                                   
  the failure of the onshore Highlander subject                                                                                 
  decisions by HOGA to delay or not to pursue                                                                                   
  reasons unrelated to operational performance,                                                                                 
  legal or regulatory changes that could impact                                                                                 
  general economic, securities markets and industry                                                                             

  22  

Fluctuations
in the volume of the trading market may have a negative effect on the market price for the Royalty Trust units. Accordingly, Royalty
Trust unitholders may not be able to realize a fair price when they determine to sell their Royalty Trust units or may have to hold them
for a substantial period of time until the market for the Royalty Trust units improves, if it does at all. HOGA has a call right with
respect to the outstanding Royalty Trust units at $10 per Royalty Trust unit. This call right could impose a ceiling on the price of
the Royalty Trust units. In addition, if the Royalty Trust units are then listed for trading or admitted for quotation on a national
securities exchange or any quotation system and the volume-weighted average price per Royalty Trust unit is equal to $0.25 or less for
the immediately preceding consecutive nine-month period, HOGA may purchase all, but not less than all, of the outstanding Roy