Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 60

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 60
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 including the requirement
that a majority of our directors be independent, as defined in the Nasdaq Capital Market Rules, and the requirement that our compensation
and nominating and corporate governance committees consist entirely of independent directors. Although we do not intend to rely on the
“controlled company” exemption under the Nasdaq Listing Rules, we could elect to rely on this exemption in the future. If
we elect to rely on the “controlled company” exemption, a majority of the members of our board of directors might not be
independent directors and our nominating and corporate governance and compensation committees might not consist entirely of independent
directors. Accordingly, during any time while we remain a controlled company relying on the exemption and during any transition period
following a time when we are no longer a controlled company, you would not have the same protections afforded to shareholders of companies
that are subject to all of the Nasdaq Capital Market corporate governance requirements. Our status as a controlled company could cause
our Ordinary Shares to be less attractive to certain investors or otherwise harm our trading price.

In addition, the interests
of these shareholders may not be the same as or may even conflict with your interests. For example, these shareholders could attempt
to delay or prevent a change in control of us, even if such change in control would benefit our other shareholders, which could deprive
our shareholders of an opportunity to receive a premium for their Ordinary Shares as part of a sale of us or our assets and might affect
the prevailing market price of our Ordinary Shares due to investors’ perceptions that conflicts of interest may exist or arise.
As a result, this concentration of ownership may not be in the best interests of our other shareholders.

Risks Related to Equity Line of Credit

It is not possible to predict the
actual number of ELOC Shares, if any, we will sell under the ELOC Purchase Agreement to the Investor, or the actual gross proceeds resulting
from those sales.

On March 15, 2024,
we entered into an equity purchase agreement (the “ ELOC Purchase Agreement”) with Square Gate Capital Master Fund, LLC - 
Series 1, a Delaware limited liability company (the “ Investor”), pursuant to which the Investor has committed to purchase
up to $20 million of our Ordinary Shares (the “ ELOC Shares”), subject to certain limitations and conditions set forth in
the ELOC Purchase Agreement. We have registered for resale of the ELOC Shares, together with 306,123 Ordinary Shares (the “ Commitment
Shares”) that