Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 73

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 73
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, Gryphon stockholders will have experienced substantial dilution
of their ownership interests in Gryphon without receiving the expected commensurate benefit or only receiving part of the commensurate
benefit to the extent the Combined Company is able to realize only part of the expected strategic and financial benefits currently anticipated
from the Mergers.

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The intended benefits of the Mergers may
not be realized.

The Mergers pose risks for Gryphon’s and
ABTC’s ongoing operations, including, among others:

●that senior management’s attention may be diverted from
management of the respective businesses, current operations and development;

●that there are significant costs and expenses associated with
any undisclosed or potential liabilities; and

●that unforeseen difficulties may arise in integrating Gryphon’s
and ABTC’s businesses in the Combined Company.

As a result of the foregoing and other factors,
risks and characteristics, the Combined Company may be unable to realize the full strategic and financial benefits currently anticipated
from the Mergers and Gryphon and ABTC cannot assure you that the Mergers will be accretive to Gryphon or ABTC stockholders in the near
term or at all. Furthermore, if Gryphon or ABTC stockholders fail to realize the intended benefits of the Mergers or they take longer
than expected to achieve, the market price of the Combined Company’s common stock could decline to the extent that the market price
reflects those anticipated benefits. Gryphon stockholders will have experienced substantial dilution of their ownership interests in Gryphon
without receiving any commensurate benefit or only receiving part of the commensurate benefit to the extent the Combined Company is able
to realize only part of the strategic and financial benefits currently anticipated from the Mergers.

Failure to complete the Mergers may result
in Gryphon paying a termination fee to ABTC, which could significantly harm the price of the Gryphon Common Stock and Gryphon’s
future business and operations.

If the Mergers are not
completed and the ABTC Merger Agreement is terminated under certain circumstances, Gryphon may be required to pay ABTC a termination
fee of $5,000,000, in addition to the out-of-pocket fees and expenses incurred by or on behalf of ABTC in connection with the
transactions contemplated by the ABTC Merger Agreement. Even if such a termination fee is not payable in connection with a
termination of the ABTC Merger Agreement, Gryphon will have incurred significant fees and