Company: FORL
Filing Date: 2025-04-30
Form Type: 10-K
Source: 0001213900-25-037576
Chunk: 305

Company: Four Leaf Acquisition Corp
Filing Date: 2025-04-30
Form: 10-K
Item: Item 1A
Chunk 305
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 for us to pursue a business
combination with a China-based business.

The M&A Rules adopted by six PRC regulatory agencies in 2006 and
amended in 2009, and some other regulations and rules concerning mergers and acquisitions established additional procedures and requirements
that could make merger and acquisition activities by foreign investors more time-consuming and complex, including requirements in some
instances that the MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC
domestic enterprise. Moreover, the Anti-Monopoly Law requires that the anti-monopoly enforcement agency of the State Council (currently
the State Anti-Monopoly Bureau) shall be notified in advance of any concentration of undertaking if certain thresholds are triggered.
In addition, the security review rules issued by the MOFCOM that became effective in September 2011 specify that mergers and acquisitions
by foreign investors that raise “national defense and security” concerns and mergers and acquisitions through which foreign
investors may acquire de facto control over domestic enterprises that raise “national security” concerns are subject to strict
review by the MOFCOM, and the rules prohibit any activities attempting to bypass a security review, including by structuring the transaction
through a proxy or contractual control arrangement. On July 1, 2015, the National Security Law of China took effect, which provided that
China would establish rules and mechanisms to conduct national security review of foreign investments in China that may impact national
security. On March 15, 2019, the PRC National People’s Congress approved the Foreign Investment Law, which came into effect on January
1, 2020, and reiterates that China will establish a security review system for foreign investments. On December 19, 2020, the NDRC and
the MOFCOM jointly issued the Measures for the Security Review of Foreign Investments, or the New FISR Measures, which were made according
to the National Security Law and the Foreign Investment Law and became effective on January 18, 2021. The New FISR Measures further expand
the scope of national security review on foreign investment compared to the existing rules, while leaving substantial room for interpretation
and speculation.

If in the future, we pursue a business combination with a PRC-based
business, complying with the requirements of the above-mentioned regulations and other relevant rules to complete such transactions could
be time-consuming, and any required approval processes, including obtaining approval from the MOFCOM, any