Company: STAK
Filing Date: 2025-02-26
Form Type: 424B4
Source: 0001493152-25-008310
Chunk: 75

Company: STAK Inc.
Filing Date: 2025-02-26
Form: 424B4
Chunk 75
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aries. PRC laws and regulations allow an offshore
holding company to provide funding to our PRC Subsidiaries only through loans or capital contributions, subject to the filing or approval
of government authorities and limits on the amount of capital contributions and loans. Subject to satisfaction of applicable government
registration and approval requirements, we may extend inter-company loans to our PRC Subsidiaries or make additional capital contributions
to fund their capital expenditures or working capital. For an increase of registered capital, our PRC Subsidiaries need to file such
change of registered capital with the State Administration for Market Regulation (the “SAMR”) or its local counterparts through
the enterprise registration system and the national enterprise credit information publicity system, and the SAMR or its local counterparts
will then push such information to the China’s Ministry of Commerce or its local counterparts. If the holding company provides
funding to our PRC Subsidiaries through loans, (i) in the event that the foreign debt management mechanism as provided in the Measures
for Foreign Debts Registration and Administration and other relevant rules applies, the balance of such loans cannot exceed the difference
between the total investment and the registered capital of the subsidiaries and we will need to register such loans with the SAFE or
its local branches, or (ii) in the event that the mechanism as provided in the Notice of the People’s Bank of China on Matters
concerning the Macro-Prudential Management of Full-Covered Cross-Border Financing, or PBOC Notice No. 9, applies, the balance of such
loans will be subject to the risk-weighted approach and the net asset limits and we will need to file the loans with the SAFE in its
information system pursuant to applicable requirements and guidelines issued by the SAFE or its local branches. While we currently see
no material obstacles to completing the filing and registration procedures with respect to future capital contributions to our PRC Subsidiaries
and loans to our PRC Subsidiaries, we cannot assure that we will be able to complete these filings and registrations on a timely basis,
or at all. See “Risk Factors—Risks Related to Doing Business in China—PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from using the proceeds of this Offering to make loans or additional capital contributions to our PRC Subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and