Company: NCL
Filing Date: 2025-11-24
Form Type: PRE 14A
Source: 0001575872-25-000718
Chunk: 36

Company: Northann Corp.
Filing Date: 2025-11-24
Form: PRE 14A
Chunk 36
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. If the per share market
price of our common stock does not increase in proportion to the split ratio, or following such increase does not maintain or exceed
such price, then the value of our Company, as measured by our market capitalization, will be reduced. Additionally, any reduction in
our market capitalization may be magnified as a result of the smaller number of total shares of common stock outstanding following the
Reverse Split.

Determination of the Ratio for the Reverse Split

If Proposal 3 is approved
by stockholders and the Board determines that it is in the best interests of the Company and its stockholders to move forward with the
Reverse Split, the Approved Split Ratio will be selected by the Board, in its sole discretion. However, the Approved Split Ratio will
not be less than a ratio of one-for-three (1:3) or exceed a ratio of one-for-twenty (1:20). In determining which Approved Split Ratio
to use, the Board will consider numerous factors, including, among other things:

| ● | our ability to maintain the listing of our common stock                      
 on the NYSE American;                                                        |
| ● | the per share price of our common stock immediately prior to the Reverse     
 Split;                                                                       |
| ● | the expected stability of the per share price of our common stock following  
 the Reverse Split;                                                           |
| ● | the likelihood that the Reverse Split will result in increased marketability 
 and liquidity of our common stock;                                           |
| ● | prevailing market conditions;                                                |
| ● | general economic conditions in our industry; and                             |
| ● | our market capitalization before and after the Reverse Split.                |

The purpose of selecting a range
is to give the Board the flexibility to meet business needs as they arise, to take advantage of favorable opportunities and to respond
to a changing corporate environment. Based on the number of shares of common stock issued and outstanding as of [●], 2025, after
completion of the Reverse Split, we will have between [ ] and [ ] shares of common stock issued and outstanding, depending on the Approved
Split Ratio selected by the Board.

| 20 |

Principal Effects of the Reverse Split

After the effective date
of the proposed Reverse Split, each stockholder will own a reduced number of shares of common stock. Except for adjustments that may
result from the treatment of fractional shares as described below, the proposed Reverse Split will affect all stockholders uniformly.
The proportionate voting rights and other rights and preferences of the