Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 11

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 11
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 and financing requirements.
If any of our PRC subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability
to pay dividends to us. Lichen China Limited is permitted under the laws of the Cayman Islands to provide funding to our subsidiaries
incorporated in Hong Kong through loans or capital contributions without restrictions on the amount of the funds. Our subsidiaries
are permitted under the respective laws of Hong Kong to provide funding to Lichen China Limited through dividend distribution without
restrictions on the amount of the funds. There are no restrictions on dividend transfers from Hong Kong to the Cayman Islands. Current
PRC regulations permit Fujian Province Lichen Management and Consulting Company Limited (“Lichen WFOE” or “Lichen Zixun”)
to pay dividends to the Company only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards
and regulations. The transfer of funds among companies are subject to the Provisions of the Supreme People’s Court on Several Issues
Concerning the Application of Law in the Trial of Private Lending Cases (2020 Revision, the “Provisions on Private Lending Cases”),
which was implemented on August 20, 2020 to regulate the financing activities between natural persons, legal persons and unincorporated
organizations. As advised by our PRC counsel, Tianyuan Law Firm, the Provisions on Private Lending Cases does not prohibit using cash
generated from one subsidiary to fund another subsidiary’s operations. We have not been notified of any other restriction which
could limit our PRC subsidiaries’ ability to transfer cash between PRC subsidiaries. During the fiscal years ended December 31,
2020, Lichen Zixun made dividend payments of RMB30 million (approximately $4.3 million) to the then ultimate shareholders of Lichen Zixun,
who are PRC individuals. The Company made no such dividend, distribution or transfer during the fiscal year ended December 31, 2021. As
of the date of this prospectus supplement, except for the previously mentioned dividend payments in fiscal year 2020, neither the Company
nor its subsidiaries have made other transfers, dividends, or distributions to investors and no investors have made transfers, dividends,
or distributions to the Company or its subsidiaries. As of the date of this prospectus supplement, no dividends, distributions or transfers
has been made between Lichen China Limited and any of its subsidiaries. We do not expect to pay any cash dividends in