Company: PENG
Filing Date: 2025-05-02
Form Type: DEF 14A
Source: 0001193125-25-110748
Chunk: 42

Company: Penguin Solutions, Inc.
Filing Date: 2025-05-02
Form: DEF 14A
Chunk 42
---
 Solutions Cayman shareholders. In addition, it is likely that Penguin Solutions Cayman may determine to terminate the Scheme of Arrangement and not proceed with the Transaction if any condition, modification or amendment is imposed on us that is adverse to Penguin Solutions Cayman and its shareholders. Please see “The Scheme of Arrangement Proposal—The Scheme of Arrangement—Court Sanction of the Scheme of Arrangement.” The market for the Penguin Solutions Delaware common stock may differ from the market for the Penguin Solutions Cayman ordinary shares and the market price of Penguin Solutions Delaware common stock may as a result be subject to volatility. We expect to list the Penguin Solutions Delaware common stock on Nasdaq under the symbol “PENG,” the same trading symbol as the Penguin Solutions Cayman ordinary shares. The market price, trading volume or volatility, or potential investor pool of the Penguin Solutions Delaware common stock may be different from those of the Penguin Solutions Cayman ordinary shares. 24

As a result, the market price of Penguin Solutions Delaware common stock could be subject to
wide fluctuations, which may be unrelated to the Penguin Solutions group of companies’ operating performance and prospects but nevertheless affect the price of Penguin Solutions Delaware common stock. This volatility may affect the ability of
holders of Penguin Solutions Delaware common stock to sell their shares at an advantageous price.

The Transaction may adversely impact our effective tax rate.

Although we do not expect the Transaction to increase our effective tax rate, there is a risk that our effective tax rate
may increase after the Transaction. Following the Transaction, our effective tax rate may change significantly, which could materially impact our financial results, including our earnings and cash flow, for periods after the Transaction, and may
fluctuate significantly from period to period. Our effective tax rate is based upon the application of currently applicable income tax laws, regulations and treaties, as well as current judicial and administrative interpretations of these income tax
laws, regulations and treaties in various jurisdictions, including other than the United States.

In light of these factors, there can be
no assurance that our effective tax rate will not increase in future periods, including as a result of and following the Transaction. Moreover, U.S. tax laws significantly limit our ability to redomicile outside of the United States once the
Transaction has occurred. Accordingly, if our effective tax rate were to increase as a result of the Transaction, our business and financial performance could be adversely affected.

The Transaction will result in additional direct and indirect costs, even if it is not consummated.

We will incur additional costs and