Company: OSRH
Filing Date: 2025-01-24
Form Type: S-4/A
Source: 0001213900-25-006139
Chunk: 128

Company: OSR Holdings, Inc.
Filing Date: 2025-01-24
Form: S-4/A
Chunk 128
---
 compliance with and regulation under the Investment Company Act, BLAC would be subject to additional regulatory burdens and expenses for which we have not allotted funds. As a result, unless BLAC is able to modify its activities so that BLAC would not be deemed an investment company, we may abandon our efforts to complete an initial business combination and instead liquidate BLAC. If BLAC is required to liquidate, our stockholders will miss the opportunity to benefit from an investment in a target company and the appreciation in value of such investment through an initial business combination. Additionally, if BLAC is required to liquidate, there will be no redemption rights or liquidating distributions with respect to BLAC’s Warrants and Rights, which will expire worthless in the event of BLAC’s winding up. BLAC may be subject to tax liability if OSR Holdings fails to pay its local taxes. Under the Framework Act on National Taxes, if OSR Holdings is unable to meet its national tax obligations with its assets, we will be subject to the secondary tax liability for any taxes accrued during the period we hold our shares in OSR Holdings. Under the Local Tax Act (of Korea), we may also be subject to the secondary tax liability if OSR Holdings fails to pay its local taxes. The secondary tax liability is equal to the amount of unpaid taxes multiplied by our shareholding ratio of OSR Holdings. There is no assurance that we will not be subject to such tax liabilities or that OSR Holdings will have sufficient cash flow to cover such potential tax liabilities. In addition, as of June 30, 2024, OSR Holdings has deferred tax liabilities of approximately $30,292,435, resulting from the differences between book and tax basis for assets acquired or created during previous business combinations as a result of purchase price allocation for accounting purposes, which will be due if and only when certain taxable events occur in the future which will reverse or eliminate such basis difference (i.e., sales of subsidiaries). Risks Related to New OSR Holdings Securities The price of New OSR Holdings’ Common Stock and warrants may be volatile. The price of New OSR Holdings’ Common Stock and warrants may fluctuate due to a variety of factors, including: •actual or anticipated fluctuations in its quarterly and annual results and those of other public companies in the same or similar industry; •mergers and strategic alliances in the industry in which it operates; •market prices and conditions in the industry in which it operates; •changes in government regulation; •potential or actual military conflicts or acts