Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 243

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 243
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 with no underlying
U.S. business. FIRRMA, and subsequent implementing regulations that are now in force, also subject certain categories of investments to
mandatory filings. If our initial business combination with any potential target company falls within the scope of foreign ownership restrictions,
we may be unable to consummate a business combination with such business. In addition, if our business combination falls within CFIUS’s
jurisdiction, we may be required to make a mandatory filing or determine to submit a voluntary notice to CFIUS, or to proceed with the
initial business combination without notifying CFIUS and risk CFIUS intervention, before or after closing the initial business combination.
CFIUS may decide to block or delay our initial business combination, impose conditions to mitigate national security concerns with respect
to such initial business combination or order us to divest all or a portion of a U.S. business of the combined company if we had proceeded
without first obtaining CFIUS clearance.

Moreover, the process of
government review, whether by CFIUS or otherwise, could be lengthy. Because we have only a limited time to complete the initial business
combination, our failure to obtain any required approvals within the requisite time period may require us to liquidate. If we liquidate,
our public shareholders may only receive the cash held in the trust account, and our rights will expire worthless. This will also cause
you to lose any potential investment opportunity in a target company and the chance of realizing future gains on your investment through
any price appreciation in the combined company.

Recent regulatory actions by the Chinese government with respect to foreign capital efforts and activities, including business combinations with offshore shell companies such as SPACs, may adversely impact our ability to consummate a business combination with a China based entity or business, or materially impact the value of our securities following any such business combination.

If we continue to pursue
the Proposed GRT Business Combination, we will eventually submit for shareholder approval a business combination with a target business
located or based in China. On July 30, 2021, the Chairman of the SEC issued a statement highlighting potential issues resulting from
recent China regulatory changes and guidance that may impact investors’ investments in China based entities. According to the SEC’s
Chairman, the People’s Republic of China provided new guidance to and placed restrictions on China-based companies raising capital
offshore, including through associated offshore shell companies. These developments include China government-led cybersecurity reviews
of certain companies raising capital through offshore entities. This is relevant to U