Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 234

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1A
Chunk 234
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 liabilities and criminal penalties on our directors and officers under
United States laws.

In particular, investors should be aware that there is uncertainty as to whether the courts of the Cayman Islands or any other applicable jurisdictions would recognize and enforce judgments of U.S. courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States or entertain original actions brought in the Cayman Islands or any other applicable jurisdiction’s courts against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

There may be tax consequences to the Proposed GRT Business Combination that may adversely affect U.S. holders.

We expect to undertake the Proposed GRT Business Combination such that it would qualify as either a transaction governed by Section 351(a) of the Code or a “reorganization” within the meaning of Section 368(a) of the Code so as to minimize any adverse U.S. federal income tax consequences to U.S. holders. However, such business combination might not meet the requirements of Section 368(a) of the Code or Section 351(a) of the Code. Further, even if the business combination qualifies under such statutory provisions, U.S. holders may still be subject to adverse U.S. federal income tax consequences due to the “passive foreign investment company rules.”

In addition, after the closing of the business combination, the combined entity may be subject to the tax laws of jurisdictions other
than the Cayman Islands, in which case U.S. holders may be subject to withholding taxes or other taxes with respect to their ownership
of our securities.

U.S. holders exchanging their company securities in the business combination should consult their tax advisors to determine the tax consequences thereof.

48

In connection with the Proposed GRT Business Combination and during the interim period, we are prohibited from entering into certain transactions that might otherwise be beneficial to us or its shareholders.

Until the earlier of consummation of the business combination or termination of the Merger Agreement, we are subject to certain limitations on the operations of its business, including restrictions on its ability to merge, consolidate or amalgamate with or into, or acquire (by purchasing a substantial portion of the assets of or equity in, or by any other manner) any entity other than GRT. The limitations on our conduct of our business during this period could have the effect of delaying or preventing other strategic transactions and may, in some cases, make it impossible to pursue business opportunities that are