Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 291

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 291
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 the Consideration Shares VWAP is below $1,200,000, the Company
has agreed to pay Nekcom the shortfall between $7,500,000 and the Consideration Shares VWAP in cash. The Company recognized its 20% investment
in Nekcom under the equity method. However, it does not have any impact on the Company’s consolidated financial statements as of
March 31, 2024.

Between September 30 and December 20, 2024, PubCo,
the Company, and Epicsoft Asia Pte. Ltd., an indirect wholly-owned subsidiary of the Company (“Epicsoft Asia”), entered into
a convertible note purchase agreement (the “Note Purchase Agreements”) with each of certain accredited investors (the “Transaction
Investors”) pursuant to which the Transaction Investors have agreed to pay the Company an aggregate of $30,025,000 for certain convertible
notes (the “Note”) which shall be convertible into the Company’s fully paid and nonassessable ordinary shares that would
be exchanged for Merger Consideration Shares (as defined in the Merger Agreement) at the closing of the transactions (the “Conversion
Date”) contemplated by the Merger Agreement (the “Business Combination”). In December 2024, PubCo, the Company and GCL
Global Pte. Ltd., a direct wholly-owned subsidiary of the Company (“GCL Global SG”) entered into substantially the same Note
Purchase Agreements for an additional $3,000,000 of Convertible Notes. Pursuant to the Note Purchase Agreements, an additional thirty
percentage (30%) of the number of Merger Consideration Shares issued to the Transaction Investors (the “Bonus Shares”) will
be held in an escrow account for three (3) years from the Conversion Date. At the end of each of the first three anniversary dates of
the Conversion Date, one-third (1/3) of the Bonus Shares shall be released from the escrow account to either the Transaction Investors
or to the Company for cancellation, based on the number of Merger Consideration Shares held by the Transaction Investors at the time.
In the event that the lowest volume-weighted average closing price of the Merger Consideration Shares is less than $4.50 per share for
any ten (10) consecutive trading days during the last month prior to the third anniversary day of the Conversion Date, the Transaction
Investors will be entitled to receive certain Top-Up Shares (defined in the Note Purchase Agreement)