Company: GIGGU
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000950170-25-034611
Chunk: 124

Company: GigCapital7 Corp.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 124
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 incurred an immediate and substantial dilution of approximately 101.7% or $10.17 per share (the difference between the pro forma net tangible book value of $(0.17) per share and the initial offering price of $10.00 per share). 

The non-managing investors have expressed an interest to purchase substantially all of the public units in the Offering, which may affect our ability to meet Nasdaq listing requirements or maintain such listing, may reduce the trading volume, volatility and liquidity for our public shares, if the non-managing investors choose not to trade their public shares post-offering, and may adversely affect the trading price of our public shares. 

The non-managing investors purchased an aggregate of approximately 13.578 million of public units in the Offering at the offering price. None of the non-managing investors purchased more than 9.9% of the public units to be sold in the Offering. Depending on how many public units are purchased and held by the non-managing investors (assuming they choose not to trade their public shares post-Offering), the post-offering trading volume, volatility and liquidity of our securities may be reduced relative to what they would have been had the public units been more widely offered and sold to other public investors. The public shares purchased by the non-managing investors are not subject to any transfer restrictions, and any non-managing investor is free to trade its public shares anytime after the closing. 

Nasdaq’s initial listing eligibility requirements for special purpose acquisition companies provide that we must have at least 300 round lot holders upon the completion of the Offering, and that in order to maintain the listing on Nasdaq, that we must have at least 300 public shareholders. To the extent that the non-managing investors purchase substantially all of the public units in the Offering, then unless there are a sufficient number of other purchasers of public units in the Offering to satisfy the Nasdaq listing eligibility requirements, we will not be successful in listing on Nasdaq, and if we are able to list on Nasdaq, but the non-managing investors continue to hold the shares included in the public units that they acquire in the Offering, whereas other purchasers do not do so and the trading volume, volatility or liquidity are effected by the public units not having been more widely offered, then it is possible that we will not be able to maintain the number of public shareholders required by Nasdaq to continue to list on Nasdaq. 

Although we have no knowledge of any affiliation or other agreement or arrangement, as to