Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 42

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 42
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, or any entity managed
or controlled by B. Riley Principal Capital II or its sole member will engage in or effect, directly or indirectly, for its own account
or for the account of any other of such persons or entities, any short sales of the Common Stock or hedging transactions that establishes
a net short position in the Common Stock during the term of the Purchase Agreement. Furthermore, B. Riley Principal Capital II has agreed
that, during the term of the Purchase Agreement, with respect to each brokerage account in which shares of Common Stock beneficially owned
by B. Riley Principal Capital II are held or to be held, it shall provide written instructions to the applicable broker that it does not
wish to participate in, and expressly opts out of, any “fully paid lending program” or similar program with respect to such
brokerage account so that shares of Common Stock beneficially owned that are, or to be held in, such brokerage account will not be made
available by the broker for lending to any third person in connection with, to effect, or otherwise to facilitate any short sale of Common
Stock by any person.

Prohibition on Dilutive Issuances and Other Similar Transactions

With certain
limited exceptions, we are prohibited from entering into certain types of “dilutive” equity transactions during the period
beginning on the trading day immediately prior to the applicable Purchase Date for a Purchase or Intraday Purchase (as applicable), and
ending on the third trading day after the full settlement thereof under the Purchase Agreement, and we are prohibited from effecting or
entering into any agreement to effect an “equity line of credit,” an “at the market offering” or other substantially
similar continuous offering, other than pursuant to the Purchase Agreement, in which the Company may offer, issue or sell Common Stock
or any securities exercisable, exchangeable or convertible into Common Stock at a future-determined price.

Qualified Independent Underwriter

We have engaged
Seaport, a registered broker-dealer and FINRA member, to act as a qualified independent underwriter in this offering. B. Riley Principal
Capital II has agreed to pay Seaport a cash fee of $50,000 upon the completion of this offering as consideration for its services and
to reimburse Seaport up to $5,000 for expenses incurred in connection with acting as the qualified independent underwriter in this offering.
In accordance with FINRA Rule 5110, such cash fee and expense reimbursement to be paid to Seaport