Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 66

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 66
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 These additional obligations could have a material adverse effect on our business, financial condition,
results of operations and prospects. These factors could also make it more difficult to attract and retain qualified members of our board
of directors, particularly to serve on our audit committee, compensation committee and nominating committee, and qualified executive officers.

As a result of disclosure of
information in the prospectus we filed in connection with the Business Combination, this prospectus and filings required of a public company,
our business and financial condition has and will become more visible, which we believe may result in threatened or actual litigation,
including by competitors and other third parties. If such claims are successful, our business and results of operations could be adversely
affected, and, even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary
to resolve them, could cause an adverse effect on our business, financial condition, results of operations, prospects and reputation.

Recent market volatility could impact the share price and trading volume of our securities.

The trading market for our
securities could be impacted by recent market volatility. Recent stock run-ups, divergences in valuation ratios relative to those seen
during traditional markets, high short interest or short squeezes, and strong and atypical retail investor interest in the markets may
impact the demand for the Ordinary Shares.

A possible “short squeeze”
due to a sudden increase in demand of the Ordinary Shares that largely exceeds supply may lead to price volatility in the Ordinary Shares.
Investors may purchase the Ordinary Shares to hedge existing exposure or to speculate on the price of the Ordinary Shares. Speculation
on the price of the Ordinary Shares may involve both long and short exposures. To the extent aggregate short exposure exceeds the number
of the Ordinary Shares available for purchase, investors with short exposure may have to pay a premium to repurchase the Ordinary Shares
for delivery to lenders. Those repurchases may in turn, dramatically increase the price of the Ordinary Shares. This is often referred
to as a “short squeeze.” A short squeeze could lead to volatile price movements in the Ordinary Shares that are not directly
correlated to the operating performance.

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It is not expected that we will pay dividends in the foreseeable future.

It is expected that we will
retain most, if not all, of our available funds and any future earnings to fund the development and growth of our business. As a result,
it is not expected that we will pay any cash dividends in the