SEC Filing Document

Company: Ambitious Entertainment, Inc.
Ticker: 
CIK: 1900851
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2025-10-08
Accession Number: 0001493152-25-017387
Exchange: 
SIC Code: 7812
SIC Description: Services-Motion Picture & Video Tape Production
URL: https://www.sec.gov/Archives/edgar/data/1900851/000149315225017387/filename1.htm

Chunk 36 of 63
Word Count: 1275
Character Count: 8343

Document Content:

including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, of each series of preferred stock. The purpose of authorizing our board of directors to issue preferred stock and to determine such preferred stock’s rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions, future financings, and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority of our outstanding voting stock. Presently, our board of directors has not authorized the creation or issuance of any shares or series of preferred stock, and there will be no shares of preferred stock issued or outstanding upon the closing of this offering. Authorized but Unissued Shares of Common Stock and Preferred Stock

The
authorized but unissued shares of our common stock and preferred stock are available for future issuance without stockholder approval,
subject to any limitations imposed by the listing standards of the NYSE American and the Nevada Revised Statutes. These additional shares
may be used for a variety of corporate finance transactions, acquisitions, and employee benefit plans. The existence of authorized but
unissued and unreserved common stock and preferred stock could make more difficult or discourage an attempt to obtain control of us by
means of a proxy contest, tender offer, merger or otherwise.

Options

of _____________, 2025, there were [●] shares of our common stock issuable upon exercise of outstanding stock options pursuant
to our equity plans with a weighted average exercise price of $[●] per share.

Anti-Takeover
Matters

Anti-Takeover
Effects of Certain Provisions of Nevada Law

are subject to Section 78.438 of the Nevada Revised Statutes (NRS), an anti-takeover law. In general, Section 78.438 prohibits a Nevada
corporation from engaging in any business combination with any interested stockholder for a period of two years following the date that
the stockholder became an interested stockholder, unless prior to that date, the board of directors of the corporation approved either
the business combination or the transaction that resulted in the stockholder becoming an interested stockholder, or if after the date
that the stockholder becomes an interested stockholder the business combination is approved by the board of directors and by 60% of the
voting power of all disinterested stockholders at either an annual or special meeting of the stockholders of the corporation. Section
78.439 provides that business combinations after the two-year period following the date that the stockholder becomes an interested stockholder
may also be prohibited unless either approved by the corporation’s directors before the stock acquisition, or by a majority of
the disinterested stockholders or unless the price and terms of the transaction meet other criteria set forth in the statute.

Section
78.416 of the NRS defines “business combination” to include the following:

●	any
merger or consolidation involving the corporation and the interested stockholder or any other corporation which is an affiliate or
associate of the interested stockholder;

●	any
sale, transfer, pledge or other disposition of the assets of the corporation involving the interested stockholder or any affiliate
or associate of the interested stockholder if the assets transferred have a market value equal to 5% or more of all of the assets
of the corporation or 5% or more of the value of the outstanding shares of the corporation or represent 10% or more of the earning
power of the corporation;

○	subject
to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation
to an interested stockholder, with a market value of 5% or more of the value of the outstanding shares of the corporation;

○	the
adoption of a plan of liquidation proposed by or under any arrangement with the interested stockholder or any affiliate or associate
of the interested stockholder;

○	any
transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series
of voting shares of securities convertible into voting shares of the corporation beneficially owned by the interested stockholder
or any affiliate or associate of the interested stockholder; or

○	the
receipt by the interested stockholder or any affiliate or associate of the interested stockholder of the benefit, except proportionately
as a stockholder of the corporation, of any loans, advances, guarantees, pledges or other financial benefits provided by or through
the corporation.

general, Section 78.423 of the NRS defines an interested stockholder as any entity or person beneficially owning, directly or indirectly,
10% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled
by any of these entities or persons.

Control
Share Acquisitions

Sections
78.378 through 78.3793 of the NRS limit the voting rights of certain acquired shares in a corporation. The provisions apply to any acquisition
of outstanding voting securities of a Nevada corporation that has 200 or more stockholders, at least 100 of which are Nevada residents,
and conducts business in Nevada (an “issuing corporation”) resulting in ownership of one of the following categories of an
issuing corporation’s then outstanding voting securities: (i) twenty percent or more but less than thirty-three percent; (ii) thirty-three
percent or more but less than fifty percent; or (iii) fifty percent or more. The securities acquired in such acquisition are denied voting
rights unless a majority of the security holders approve the granting of such voting rights. Unless an issuing corporation’s articles
of incorporation or bylaws then in effect provide otherwise: (i) voting securities acquired are also redeemable in part or in whole by
an issuing corporation at the average price paid for the securities within 30 days if the acquiring person has not given a timely information
statement to an issuing corporation or if the stockholders vote not to grant voting rights to the acquiring person’s securities,
and (ii) if outstanding securities and the security holders grant voting rights to such acquiring person, then any security holder who
voted against granting voting rights to the acquiring person may demand the purchase from an issuing corporation, for fair value, all
or any portion of his securities. These provisions do not apply to acquisitions made pursuant to the laws of descent and distribution,
the enforcement of a judgment, or the satisfaction of a security interest, or made in connection with certain mergers or reorganizations.

Recent
Amendment to Nevada Law

May 30, 2025, Nevada enacted Assembly Bill 239 (“AB239”), which introduced certain updates to Nevada corporate law that may
further discourage unsolicited or hostile takeover attempts. Among other changes, AB239 codifies a definition of “controlling stockholder”
as a stockholder having voting power sufficient to elect a majority of the corporation’s directors, and imposes a limited fiduciary
duty requiring such controlling stockholder to refrain from exerting undue influence over directors or officers in a manner that would
induce a breach of fiduciary duty and result in a material, non-ratable benefit to the controlling stockholder. The statute also provides
a statutory safe harbor that shields controlling stockholders from liability where the conflict transaction is approved or recommended
by a committee of disinterested directors, subject to rebuttal only under narrow circumstances.

addition, AB239 clarifies that the exercise or withholding of voting power by a controlling stockholder, standing alone, does not constitute
a breach of fiduciary duty. These recent changes may enhance the ability of our board of directors and certain stockholders to resist
hostile takeovers or changes in control not supported by our board, particularly where procedural protections are observed.

Exclusive
Forum for Resolution of Disputes