Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 59

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 59
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 against our directors and officers, although our stockholders will not be deemed to have
waived its compliance with federal securities laws and the rules and regulations thereunder.

Section 203 of the DGCL

We
are subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a Delaware corporation that is listed
on a national securities exchange or held of record by more than 2,000 stockholders from engaging in a “business combination”
with an “interested stockholder” for a three-year period following the time that such stockholder becomes an interested
stockholder, unless the business combination is approved in a prescribed manner. A “business combination” includes, among
other things, certain mergers, asset or stock sales or other transactions resulting in a financial benefit to the interested stockholder.
An “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within three years
prior to the determination of interested stockholder status, 15% or more of the corporation’s outstanding voting stock. Under Section 203,
a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:

| · | before the stockholder became interested, our Board approved either the business combination or the transaction                               
 which resulted in the stockholder becoming an interested stockholder;                                                                         |
| · | upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder,                                    
 the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced,       
 excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee 
 stock plans, in some instances; or                                                                                                            |

| 30 |

| · | at or after the time the stockholder became interested, the business combination was approved by the Board                               
 of the corporation and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least 66 2/3% of the 
 outstanding voting stock which is not owned by the interested stockholder.                                                               |

Under
certain circumstances, Section 203 of the DGCL will make it more difficult for a person who would be an “interested stockholder”
to effect various business combinations with a corporation for a three-year period. This provision may encourage companies interested
in acquiring us to negotiate in advance with our Board because the stockholder approval requirement would be avoided if our Board approves