Company: NCL
Filing Date: 2025-10-24
Form Type: S-1/A
Source: 0001575872-25-000638
Chunk: 65

Company: Northann Corp.
Filing Date: 2025-10-24
Form: S-1/A
Chunk 65
---
ordance with PRC laws because we are incorporated under the laws of the State of Nevada and it will be difficult for U.S.
shareholders, by virtue only of holding our common stock, to establish a connection to the PRC for a PRC court to have jurisdiction as
required under the PRC Civil Procedures Law. As a result of the foregoing, it would be very expensive and time-consuming for a stockholder
to either seek to enforce a U.S. judgment in China or to commence an action in a Chinese court, with a strong likelihood that the stockholder
will not be successful.

We have also been advised
by Grandall Law Firm that it may also be difficult for a stockholder or overseas regulators to conduct investigations or collect evidence
within China. For example, in China, there are significant legal and other obstacles to obtaining information needed for stockholder investigations
or litigation outside China or otherwise with respect to foreign entities. Although the authorities in China may establish a regulatory
cooperation mechanism with its counterparts of another country or region to monitor and oversee cross-border securities activities, such
regulatory cooperation with the securities regulatory authorities in the U.S. may not be efficient in the absence of a practical cooperation
mechanism. Furthermore, according to Article 177 of the PRC Securities Law, or “Article 177,” which became effective in March
2020, no overseas securities regulator is allowed to directly conduct investigations or evidence collection activities within the territory
of the PRC. Article 177 further provides that Chinese entities and individuals are not allowed to provide documents or materials related
to securities business activities to foreign agencies without prior consent from the securities regulatory authority of the PRC State
Council and the competent departments of the PRC State Council. While detailed interpretation of or implementing rules under Article 177
have yet to be promulgated, the inability for an overseas securities regulator to directly conduct investigation or evidence collection
activities within China may further increase difficulties faced by you in protecting your interests.

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<div align='center'>PRIVATE PLACEMENTS</div>

Oneflow Private Placement

On December 6, 2024, the Company entered into the
Oneflow SPA with Oneflow LLC as the lead investor and four other passive investors, pursuant to which the Company agreed to sell common
stock to various purchasers (the “Oneflow Purchasers”) in a private placement transaction (the “Oneflow Private Placement”).
Pursuant to the Oneflow SPA, the Company agreed to transfer, assign,