Company: EMCRF
Filing Date: 2025-07-28
Form Type: DEF 14A
Source: 0001641172-25-021158
Chunk: 42

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-07-28
Form: DEF 14A
Chunk 42
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Nasdaq Listing Rule IM-5101-2(b) (the “36-month Rule”), requires that we complete a business combination no later than 36 months after our IPO, and Nasdaq Rule 5815 was amended effective October 7, 2024 to provide for the immediate suspension and delisting for failure to meet the 36-month requirement to complete a business combination in the 36-month Rule. Given that we received the notice of effectiveness of our IPO registration statement on Form S-1 on August 9, 2022, we will meet the 36-month deadline on August 9, 2025. In connection with the Extension Amendment Proposal, we are seeking to extend our Termination Date up to August 12, 2026, or 48 months after our IPO. If the Extension Amendment Proposal is adopted and we extend our Extended Date beyond 36 months of the effectiveness of our IPO registration statement, Nasdaq will determine that we are not in compliance with the 36-month Rule and our securities will be suspended from trading on Nasdaq and ultimately and delisted from Nasdaq. For the avoidance of doubt, any Extended Date beyond August 9, 2025 would not comply with Nasdaq Listing Rule IM-5101-2 and result in our delisting.

If our securities are delisted from trading on Nasdaq, we expect such securities to be quoted on an over-the-counter market. In this over-the-counter market, we could face significant material adverse consequences, including:

| ● | a                                                                                                                                      
 limited availability of market quotations for our securities;                                                                          |
| ● | a                                                                                                                                      
 determination that our common stock is a “penny stock” which will require brokers trading in our common stock to adhere                
 to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities; |
| ● | a                                                                                                                                      
 limited amount of news and analyst coverage; and                                                                                       |
| ● | a                                                                                                                                      
 decreased ability to issue additional securities or obtain additional financing in the future.                                         |

Additionally, because our securities will no longer be listed on Nasdaq, our securities will no longer be considered “covered securities” for the purpose of The National Securities Markets Improvement Act of 1996, which is a federal statute that prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Therefore, our securities will be subject to regulation in each state in which we offer our securities.

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