Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 39

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 39
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 of operations can be materially and adversely affected.

We may need additional capitals for our
business and future sales of our ordinary shares could cause the market price of our ordinary shares to decline.

Sales of a substantial number
of shares of our ordinary shares in the public market, or the perception that these sales could occur, may depress the market price for
our ordinary shares. These sales could also impair our ability to raise additional capital through the sale of our equity securities in
the future. We may issue additional ordinary shares in the future and our shareholders may elect to sell large numbers of shares held
by them from time to time. Our amended and restated memorandum and articles of association authorize us to issue up to 5,000,000,000
ordinary shares.

On November 24, 2023, the
Company entered into a series of securities purchase agreements separately with certain individual investors. Pursuant to the agreements,
the Company agreed to sell the Purchasers an aggregate of 6,523,152 (post-reverse stock split adjusted to 1,087,192) Class A ordinary
shares of the Company for an aggregate purchase price of $40.0 million. In February 2025, the Company entered into a supplemental agreement
with these investors to change the aggregate purchase amount to $3,972,600.

On May 16, 2024, the Company
entered into a standby equity purchase agreement (the “ SEPA”) with YA II PN, LTD. (the “ Investor”). Pursuant to
the SEPA, the Company has issued to the Investor (i) a convertible promissory note, issued on May 16, 2024 and amended and restated on
May 22, 2024, in the principal amount of $4,756,986.10; (ii) a convertible promissory note, issued on June 17, 2024 in the principal amount
of $1,500,000.00 (collectively referred to as the “ Notes”); and entered into a Registration Rights Agreement, dated as of
May 16, 2024 (together with the Notes, collectively referred to as the “ Transaction Documents”). Subsequently, the Company
and the Investor entered into an Omnibus Agreement dated December 5, 2024 to amend the Transaction Documents. Following the first closing
on May 16, 2024, the second closing occurred on June 17, 2024, the date on which the second tranche