Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 54

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1
Chunk 54
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 Unless otherwise
indicated, reference in this section and elsewhere in this Form 10-K Report to the Company’s and/or OSR’s business being adversely
affected, negatively impacted or harmed will include an adverse effect on, or a negative impact or harm to, the business, reputation,
financial condition, results of operations, revenue and future prospects of the Company.

Risks Related to the Business Combination and Business Combination
Agreement

The Company’s Chief Executive Officer and one of our directors
was previously the Chief Executive Officer and is currently the Chairman of the Board of OSR. These dual positions (i) create conflicts
of interest in the performance of his duties; and (ii) may provide for him to receive compensation following the Business Combination
that amplified his conflicts of interest in determining whether the transaction was the most advantageous.

The Company’s Chief Executive Officer and one of its directors,
Kuk Hyoun Hwang, was previously the Chief Executive Officer and is currently the Chairman of the Board of OSR. Such dual positions may
cause him to have conflicts of interest in performing his duties to both companies. Mr. Hwang is expected to remain with the Company
following the completion of the Business Combination and receive future compensation in the form of cash payments and/or the Company securities
for services he would render to the Company going forward. The personal and financial interests of Mr. Hwang may have influenced
his motivation in negotiating the Business Combination and in managing the combined Company going forward. Despite the approval of the
terms of the Business Combination Agreement by a majority of our independent directors (i.e., the Company M&A Committee), potential
conflicts of interest still may exist and, as a result, the terms of the Business Combination may not be as advantageous to our public
stockholders as they would have been absent any conflicts of interest. Mr. Hwang beneficially owns 13,069,104 shares of the
post-combination company and controls 67.8%

The PIPE Investment did not close at the closing of the Business
Combination and is not expected to be consummated with the original PIPE investor. 

As a result of the PIPE Investment not closing, BLAC did not receive
$20 million in cash at the closing of the Business Combination. The Company was insolvent at the closing of the Business Combination and
will not have enough cash to fund its operations or pay its outstanding expenses and debts. Toonon, PIPE Investor, exercised its right
to cancel