Company: FSHPU
Filing Date: 2025-08-05
Form Type: DEF 14A
Source: 0001829126-25-005812
Chunk: 22

Company: Flag Ship Acquisition Corp
Filing Date: 2025-08-05
Form: DEF 14A
Chunk 22
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 remaining Public Share into the Trust
Account. If the Extension Fee Reduction Proposal is not approved, the ability to extend the Combination Period is contingent upon the
Sponsor depositing the required amount of funds for each monthly extension ($0.033 per Public Share).

The Board’s Reasons for the Extension Fee Reduction Proposal

Under the Extension Fee
Reduction Proposal, the Company is seeking the approval of its shareholders to reduce the amount it must deposit into the Trust
Account to be equal to the lesser of (i) $60,000 for all remaining Public Shares and (ii) $0.033 for each remaining Public Share.
The Board believes that the approval of Proposal 1 will provide the Sponsor with an incentive to make the extension payments
necessary to extend the Combination Period past September 20, 2025, which is the initial deadline to consummate a qualifying
business combination as set forth in our Amended Articles. Accordingly, the Board believes that Proposal 1 is necessary in order to
be able to consummate an initial business combination. Therefore, the Board has determined that it is in the best interests of our
shareholders to approve Proposal 1 to incentivize the Sponsor to fund such Monthly Extension Fees as may be required for us to
complete an initial business combination by or before June 20, 2026, which will provide our shareholders with the
opportunity to participate in an initial business combination. The funding by the Sponsor of one or more Monthly Extensions will be
required in order for us to have the opportunity to complete the initial business combination disclosed in our current filings with
the SEC.

As discussed above, after careful consideration of all relevant factors, the Board has determined that the Extension Fee Reduction Proposal is fair to, and in the best interests of, Flag Ship and its shareholders. The Board has approved and declared advisable adoption of the Extension Fee Reduction Proposal and recommends that you vote “FOR” such adoption.

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Interests of our Sponsors, Directors and Officers

When you consider the recommendation of our Board, you should keep in mind that our Sponsors, directors and officers have interests that may be different from, or in addition to, your interests as a shareholder. These interests include, among other things, the interests listed below:

| ● | All rights specified in the Articles relating to the right of officers and directors to be indemnified by the Company, and of the Company’s officers and directors to be exculpated from monetary liability with respect to prior acts or