Company: ZCARW
Filing Date: 2025-01-21
Form Type: DEF 14A
Source: 0001213900-25-005022
Chunk: 40

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-01-21
Form: DEF 14A
Chunk 40
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 our Common Stock.
Our Board believes that current and prospective investors will view an investment in our Common Stock more favorably if our Common Stock
remains listed on Nasdaq.

Our Board also believes
that the Reverse Split and any resulting increase in the per share price of our Common Stock will enhance the acceptability and marketability
of our Common Stock to the financial community and investing public. Many institutional investors have policies prohibiting them from
holding lower-priced stocks in their portfolios, which reduces the number of potential buyers of our Common Stock, although we have not
been told by them that is the reason for not investing in our Common Stock. Additionally, analysts at many brokerage firms are reluctant
to recommend lower-priced stocks to their clients or monitor the activity of lower-priced stocks. Brokerage houses frequently have internal
practices and policies that discourage individual brokers from dealing in lower-priced stocks. Further, because brokers’ commissions
on lower-priced stock generally represent a higher percentage of the stock price than commissions on higher priced stock, investors in
lower-priced stocks pay transaction costs which are a higher percentage of their total share value, which may limit the willingness of
individual investors and institutions to purchase our Common Stock.

We cannot assure you that
the Reverse Split will have any of the desired effects described above. More specifically, we cannot assure you that after the Reverse
Split the market price of our Common Stock will increase proportionately to reflect the ratio for the Reverse Split, that the market
price of our Common Stock will not decrease to its pre-split level, that our market capitalization will be equal to the market capitalization
before the Reverse Split, or that we will be able to maintain our listing on Nasdaq.

Potential Disadvantages of the Reverse Split

As noted above, the principal
purpose of the Reverse Split would be to help increase the per share market price of our Common Stock by up to a factor of twenty. We
cannot assure you, however, that the Reverse Split will accomplish this objective for any meaningful period of time. While we expect
that the reduction in the number of outstanding shares of Common Stock will increase the market price of our Common Stock, we cannot
assure you that the Reverse Split will increase the market price of our Common Stock proportionately based on the Reverse Split ratio,
or result in any permanent increase in the market price of our Common Stock, which is dependent upon many factors, including our business
and financial performance, general market conditions and prospects for future success. If the per share market price does not increase