Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 40

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 40
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 of the Notes in the principal amount
of US$1,500,000 was issued. As of December 31, 2024, there are an aggregate amount of $6,256,986.1 principal outstanding under the Notes.
We may issue more ordinary shares in the future and, therefore, it may cause the market price of our ordinary shares to decline. See “ Item
4. Information on the Company - C. History and Development of the Company.”

Risks Related to Our Corporate Structure

We are a Cayman Islands company and, because
judicial precedent regarding the rights of shareholders is more limited under Cayman Islands law than under U. S. law, shareholders may
have less protection for their shareholder rights than they would under U. S. law.

Our corporate affairs are
governed by our Eighth Amended and Restated Memorandum and Articles of Association, the Cayman Islands Companies Act (Revised) (the “ Companies
Act”) and the common law of the Cayman Islands. The rights of shareholders to take action against the directors, actions by minority
shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the
common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent
in the Cayman Islands as well as that from English common law, which has persuasive, but not binding, authority on a court in the Cayman
Islands. The rights of our shareholders and the fiduciary responsibilities of our Directors under Cayman Islands law are not as clearly
established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman
Islands has a different body of securities laws than the United States. In addition, some U. S. states, such as Delaware, have more fully
developed and judicially interpreted bodies of corporate law than the Cayman Islands. There is no statutory recognition in the Cayman
Islands of judgments obtained in the United States, although the courts of the Cayman Islands will in certain circumstances recognize
and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits. As a result of all of the
above, public shareholders may have more difficulty in protecting their interests in the face of actions taken by management or members
of the board of directors (“ Board”) than they would as shareholders of a U. S