Bldg. 4, Suite 200, Palo Alto, CA
Bldg. 4, Suite 200, Palo Alto, CA
John P. Yung, Esq.
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ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement on Form S-1 that
we filed with the SEC using a continuous offering process.
You should read this prospectus and the information and documents incorporated
by reference carefully. Such documents contain important information you should consider when making your investment decision. See “Where
You Can Find Additional Information” and “Incorporation of Information by Reference” in this prospectus.
You should rely only on the information provided in this prospectus
or documents incorporated by reference into this prospectus. We have not authorized anyone to provide you with different information.
This prospectus covers offers and sales of our common stock only in jurisdictions in which such offers and sales are permitted. The information
contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus
or of any sale of our common stock. You should not assume that the information contained in this prospectus is accurate as of any date
other than the date on the front cover of this prospectus, or that the information contained in any document incorporated by reference
is accurate as of any date other than the date of the document incorporated by reference, regardless of the time of delivery of this prospectus
or any sale of a security.
In this prospectus, we refer to AeroCentury Corp. as “we,”
“us,” “our,” the “Company” or “ACY.” You should rely only on the information we have provided
or incorporated by reference in this prospectus. We have not authorized anyone to provide you with different information. No dealer, salesperson
or other person is authorized to give any information or to represent anything not contained in this prospectus.
ABOUT AEROCENTURY CORP.
Business of the Company
Through our emergence from bankruptcy on September 30, 2021,
and new investors and management, we are a holding company with two subsidiaries: Mega Metaverse Corp. (“Mega”) and JetFleet
Holdings Corp. (“JHC”). On January 1, 2022, JetFleet Management Corp. (“JMC”), a wholly-owned subsidiary of JHC,
was merged with and into JHC, with JHC being the surviving entity. As part of the merger, JHC changed its name to JetFleet Management
Corp. We intend to focus on the emerging GameFi sector through Mega which was recently formed in October 2021. To a lesser extent, we
will also continue to focus on third-party management service contracts for aircraft operations through our majority owned subsidiary
JHC, which was part of our legacy business.
Through Mega, we intend to focus on the GameFi sector through our first
NFT (non-fungible token) game “Mano” anticipated to be released during the first quarter of 2022. Mano is a competitive idle
role-playing game (RPG) deploying the concept of GameFi in the innovative combination of NFTs and DeFi (decentralized finance) based on
blockchain technology, with a “Play-to-Earn” model in which players can earn financial rewards while they play in Mega’s
metaverse universe “alSpace”
Our mission is to enable users to play and earn financial rewards
in the metaverse through GameFi. While our proposed future games will be supported in our alSpace universe, Mega’s key plans going
forward include: (i) NFT games with Mano as our first game, as well as other games to launch; (ii) an engine and studio where creators
can create their own games and launch in our alSpace launch pad; and (iii) a marketplace where players and users can place their in-game
NFT and other NFT to sell or to trade for other digital assets. Mega’s proposed revenue model includes: (a) sales of in-game characters
and accessories, (b) revenue share of games built by creators using our engine and studio and to launch games in alSpace launch pad,
and (c) profit share for NFT sold or traded at alSpace marketplace.
In addition, through our fifty-one percent (51.0%) ownership in JHC,
we will continue to focus on third-party management service contracts for aircraft operations. We believe that as passive investor interest
in aircraft assets has increased, there has been increasing demand from aircraft investors for professional third-party aircraft leasing
and portfolio management. We intend to take advantage of our reputation, experience and expertise in this aircraft management area.
We were also engaged in the business of investing in used regional
aircraft equipment and leasing the equipment to foreign and domestic regional air carriers. Previously, we also provided leasing and
finance services to regional airlines worldwide. In addition to leasing activities, we also sold aircraft from our operating lease portfolio
to third parties. During 2019, we were in default of a credit facility with one of our lenders due to the failure of our largest customer,
a European regional carrier. During 2020, the COVID-19 pandemic further impeded our ability to regain compliance with this lender and,
in addition, led to significant cash flow issues for many of our customers who were unable to timely meet their obligations under their
lease obligations. As a result of lessors being unable to pay their lease payment, this, in turn, adversely affect our ability to make
payment under our debt obligation leading us to seek bankruptcy protection on March 29, 2021. We no longer own any aircraft.
Bankruptcy
We and our subsidiaries, JHC and JMCand along with us and JHC
(collectively “Debtors”), filed on March 29, 2021 a voluntary petition for bankruptcy protection under Chapter 11 of the
U.S. Bankruptcy Code. The filing was made in the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy
Court”) Case No. 21-10636 (the “Chapter 11 Case”). We also filed motions with the Bankruptcy Court seeking
authorization to continue to operate our business as “debtor-in-possession” under the jurisdiction of the Bankruptcy
Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.
On August 16, 2021, in the Bankruptcy Court, the Debtors filed unexecuted
drafts of its Plan Sponsor Agreement to be entered into between us, Yucheng Hu, TongTong Ma, Qiang Zhang, Yanhua Li, Yiyi Huang, Hao
Yang, Jing Li, Yeh Cheng and Yu Wang, and identifying such individuals, collectively, as “Plan Sponsors” (the “Plan
Sponsor Agreement”), and related agreements and documents required thereunder (collectively, with the Plan Sponsor Agreement, the
“Plan Sponsor Documents”). The Plan Sponsor Documents were intended to cover the transactions contemplated by an investment
term sheet entered into with Yucheng Hu and are part of the Debtors' plan of reorganization as reflected in the Combined Disclosure Statement
and Plan filed with the Bankruptcy Court as amended and supplemented from time to time (the “Plan”). On August 31, 2021,
the Bankruptcy Court entered an order, Docket No. 0296 (the “Confirmation Order”), confirming the Plan as set forth in the
Combined Plan Statement and Plan Supplement.
On September 30, 2021 and pursuant to the Plan Sponsor Agreement, we
entered into and consummated the transactions contemplated by a Securities Purchase Agreement with the Plan Sponsor, and Yucheng Hu, in
the capacity as the representative for the Plan Sponsor thereunder, pursuant to which we issued and sold, and the Plan Sponsor purchased,
2,870,927 (14,354,635 post-split) shares of our common stock at $3.85 for each share of common stock for an aggregate purchase price of
approximately $11,053,069.
Also on September 30, 2021 and pursuant to the Plan Sponsor Agreement,
we entered into and consummated the transactions contemplated by a Series A Preferred Stock Purchase Agreement (the “JHC Series
A Agreement”) with JHC, pursuant to which JHC issued and sold, and we purchased, 104,082 shares of Series A Preferred Stock, no
par value, at $19.2156 per share of JHC Series A Preferred Stock, for an aggregate purchase price of $2 million.
The JHC Series A Preferred Stock is non-convertible, non-transferable,
and has the following rights:
Divided Rights. The JHC Series A Preferred Stock, in preference
to the Common Stock of JHC (“JHC Common Stock”), shall be entitled to receive quarterly dividends at a rate of 7.50% (the
“Dividend Rate”) of the Series A Original Issue Price per annum per share of JHC Series A Preferred Stock commencing in the
first fiscal quarter following the first fiscal year for which JHC reports a positive Earnings Before Interest, Taxes, Depreciation, and
Amortization (EBITDA) for the preceding 12 month period (the “Initial Profitable Year”).
Liquidation Preference. In the event of a liquidation event,
the holders of JHC Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of the proceeds
of such liquidation event (the “Proceeds”) to the holders of the other series of preferred stock or the JHC Common Stock,
an amount per share equal to the Series A Original Issue Price, plus declared but unpaid dividends on such share. The JHC Series A Preferred
Stock has the following features:
Redemption. JHC shall have the right to ratably redeem, in whole
or in parts, any shares of JHC Series A Preferred Stock at the Redemption Price (as defined below) upon fifteen (15) days prior written
notice to the holders of JHC Series A Preferred Stock. In addition, at any time following seven (7) years after the date that JHC first
issues any shares of JHC Series A Preferred Stock, and within thirty (30) days upon a written request from the holders of a majority of
the outstanding shares of JHC Series A Preferred Stock, all outstanding shares of JHC Series A Preferred Stock shall be redeemed (the
date of such redemption, the “Redemption Date”) by JHC by the payment from any source of funds legally available at the Redemption
Price (defined below). The redemption price per share of Series A Preferred Stock (“Redemption Price”) shall be equal to:
(i) if
redeemed prior to an Initial Profitable Year: (A) the Series A Original Issue Price, plus (B) any declared but unpaid dividends, plus
(C) an amount per quarter equal to the Series A Original Issue Price multiplied by the Dividend Rate and divided by four for any full
quarterly period for which dividends were not declared that falls within the period beginning on the date such share was issued by JHC
and ending on the Redemption Date; or
(ii) if
redeemed after an Initial Profitable Year: (A) the Series A Original Issue Price, plus (B) any declared but unpaid dividends, plus (C)
an amount per quarter equal to the Series A Original Issue Price multiplied by the Dividend Rate and divided by four for any full quarterly
period after the Initial Profitable Year for which dividends were not declared that falls within the period beginning on the date such
shares was issued by JHC and ending on the Redemption Date.
In addition, each share of JHC Series A Preferred Stock shall be entitled
to one (1) vote on any matter that is submitted to a vote or for the consent of the shareholders of JHC. The JHC Series A Preferred Stock
provides the Company with 51% voting control over JHC immediately following its issuance.
Change In Control
As a condition to the closing of the Securities Purchase Agreement,
Michael G. Magnusson resigned as President and Chief Executive Officer; Harold M. Lyons resigned as Chief Financial Officer, Treasurer,
Senior Vice President, Finance and Secretary; and Michael G. Magnusson, Toni M. Perazzo, Roy E. Hahn, Evan M. Wallach and David P. Wilson
resigned as directors of the Company effective October 1, 2021.
Effective as on October 1, 2021, Yucheng Hu, Florence Ng, Jianan Jiang,
Qin Yao and Siyuan Zhu (the “Incoming Directors”) were appointed to serve as members on our Board of Directors. The Incoming
Directors were designated by the Plan Sponsor pursuant to the Plan Sponsor Agreement to hold office until our next annual meeting. The
Board of Directors also appointed Mr. Hu to serve as Chairman, President and Chief Executive Officer; Ms. Ng to serve as Vice President
of Operations; and Qin (Carol) Wang to serve as its Chief Financial Officer, Secretary and Treasurer the Company.
Additional Information
AeroCentury is a Delaware corporation incorporated in 1997. Our
headquarter is located at 3000 El Camino Real, Bldg. 4, Suite 200, Palo Alto, CA. Our main telephone number is (650) 340-1888. Our
website is located at: http://www.aerocentury.com.
RISK FACTORS
An investment in our common stock involves risks. Prior to making a
decision about investing in our common stock, you should consider carefully the risks together with all of the other information contained
or incorporated by reference in this prospectus, including any risks in the section entitled “Risk Factors” contained in any
supplements to this prospectus and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in our subsequent
filings with the SEC. Each of the referenced risks and uncertainties could adversely affect our business, operating results and financial
condition, as well as adversely affect the value of an investment in our securities. Additional risks not known to us or that we believe
are immaterial may also adversely affect our business, operating results and financial condition and the value of an investment in our
securities.
Risks Related to our Business
The GameFi industry is new and developing and there is no assurance
that our games currently under development will be accepted by players.
The development of the GameFi industry is new and continues to rapidly
evolve. We intend to develop games with a “Play-to-Earn” model that allows players to earn financial rewards through NFT while
they play in Mega’s metaverse universe “alSpace”. Our first NFT game Mano is currently under development and expected
to be released during the first quarter of 2022. No assurance can be made that our game Mano will be developed on time and, if developed,
that it will generate enough interest in order for players to use and trade their Mano NFTs.
The creation of NFTs for our games is dependent on our ability to
develop an acceptable blockchain.
Our ability to create NFTs that can be minted, accepted and transferred
is dependent on our ability to develop or engage a third party to develop an accepted and secured blockchain. Failure to develop or engage
a third party to develop a secured and reliable blockchain, will adversely affect our ability to create a marketplace where players and
users trade their NFTs.
Our alSpace universe is currently under development and no assurance
can be given that our alSpace platform will be accepted by others or generate sufficient interest.
Our proposed alSpace metaverse platform is currently under development.
It is our intent that the alSpace universe will (i) support our NFT games to launch; (ii) provide an engine and studio where creators
can create their own game and use alSpace; and (iii) create a marketplace where players and users place their in-game NFT other NFT to
sell and trade. Failure to develop a robust alSpace metaverse universe will adversely affect our business objectives.
Our business will be intensely competitive. We may not deliver successful
and engaging games, or players and consumers may prefer our competitors’ products over our own.
Although the development of the GameFi industry is new, we anticipate
that competition in our business will be intense. Many new products will be introduced, but we anticipate that only a relatively small
number of products will drive significant engagement and account for a significant portion of total revenue. It is anticipated that our
competitors will range from mature well-funded companies to emerging start-ups. If we do not develop consistent high-quality, well-received
and engaging products that are of interest to players, the lack of interest will adversely affect our business objectives.
Risks Related to our Company
Our filing of bankruptcy may adversely affect our business and relationships.
On August 31, 2021, the Bankruptcy Court entered its Findings of Fact,
Conclusions of Law and Order Approving and Confirming the Combined Disclosure Statement and Joint Chapter 11 Plan of AeroCentury Corp.,
and its Affiliated Debtors. The Effective Date of the Plan occurred on September 30, 2021. Each condition precedent to consummation of
the Plan has been satisfied and/or waived.
As a result of our bankruptcy filing:
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suppliers, vendors or other contract counterparties may require
additional financial assurances or enhanced performance from us;
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our ability to compete for new business may be adversely affected;
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our ability to attract, motivate and retain key executives and
employees may be adversely affected;
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our employees may be distracted from performance of their duties
or more easily attracted to other employment opportunities; and
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we may have difficulty obtaining the capital we need to operate
and grow our business.
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The occurrence
of one or more of these events could have a material adverse effect on our business, financial condition, results of operations and reputation.
Upon our emergence from Chapter 11, the composition of our stockholder
base has changed significantly.
As a result of the concentration of our equity ownership, our future
strategy and plans may differ materially from those in the past. Upon our anticipated emergence from Chapter 11, the Plan Sponsors collectively
held approximately 65.0% of our common stock, while holders of our legacy equity interests held approximately 35.0% of our common stock.
Therefore, the Plan Sponsors have significant control on the outcome of matters submitted to a vote of stockholders, including, but not
limited to, electing directors and approving corporate transactions. As a result, our future strategy and plans may differ materially
from those of the past. Circumstances may occur in which the interests of the Plan Sponsors could be in conflict with the interests of
other stockholders, and the Plan Sponsors would have substantial influence to cause us to take actions that align with their interests.
Should conflicts arise, there can be no assurance that the Plan Sponsors would act in the best interests of other stockholders or that
any conflicts of interest would be resolved in a manner favorable to our other stockholders.
The composition of our board of directors has changed significantly.
Pursuant to the Plan, the composition of our board of directors changed
significantly. Upon our emergence from Chapter 11, our board of directors consisted of five directors, none of whom had previously served
on our board of directors. The new directors have different backgrounds, experiences and perspectives from those who previously served
on our board of directors and thus may have different views on the issues that will determine our future. There can be no assurance that
our new board of directors will pursue, or will pursue in the same manner, our previous strategy and business plans.
Certain information contained in our historical financial statements
are not comparable to the information contained in our financial statements after the adoption of fresh start accounting.
Upon our emergence from Chapter 11, we adopted fresh start accounting
in accordance with ASC Topic 852 and became a new entity for financial reporting purposes. As a result, we revalued our assets and liabilities
based on our estimate of our enterprise value and the fair value of each of our assets and liabilities. These estimates, projections and
enterprise valuation were prepared solely for the purpose of the bankruptcy proceedings and should not be relied upon by investors for
any other purpose. At the time they were prepared, the determination of these values reflected numerous estimates and assumptions, and
the fair values recorded based on these estimates may not be fully realized in periods subsequent to our emergence from Chapter 11.
The consolidated financial statements after our emergence from bankruptcy
will not be comparable to the consolidated financial statements on or before that date. This will make it difficult for stockholders to
assess our performance in relation to prior periods.
Our independent registered public accounting firm has included an
explanatory paragraph relating to our ability to continue as a going concern in its report on our audited financial statements included
in this prospectus. Our audited financial statements at December 31, 2020 and 2019 and for the years then ended were prepared assuming
that we will continue as a going concern.
The report of our independent registered public accounting firm incorporated
by reference in this prospectus contains an explanatory paragraph on our financial statements stating that there is substantial doubt
about our ability to continue as a going concern due to us having suffered recurring losses from operations, default of our debt obligations
under the credit facility, net capital deficiency and filing for protection under the bankruptcy code. Our audited consolidated financial
statements have been prepared assuming that we will continue as a going concern and contemplate the realization of assets and the satisfaction
of liabilities in the normal course of business. Our ability to continue as a going concern is contingent upon our ability to successfully
implement our plan of reorganization, among other factors, and the realization of assets and the satisfaction of liabilities.
Our business depends on the continuing efforts of our management.
If it loses their services, our business may be severely disrupted.
Our business operations depend on the efforts of our new management,
particularly the executive officers named in this document. If one or more of our management were unable or unwilling to continue their
employment with us, it might not be able to replace them in a timely manner, or at all. We may incur additional expenses to recruit and
retain qualified replacements. Our business may be severely disrupted, and our financial condition and results of operations may be materially
and adversely affected. In addition, our management may join a competitor or form a competing company. As a result, our business may be
negatively affected due to the loss of one or more members of our management.
As of December 31, 2020, our internal control over financial reporting
was ineffective, and if we continue to fail to improve such controls and procedures, investors could lose confidence in our financial
and other reports, the price of our common stock may decline, and we may be subject to increased risks and liabilities.
As a public company, we are subject to the reporting requirements of
the Securities Exchange Act of 1934, as amended (“Exchange Act”) and the Sarbanes-Oxley Act of 2002. The Exchange Act requires,
among other things, that we file annual reports with respect to our business and financial condition. Section 404 of the Sarbanes-Oxley
Act requires, among other things, that we include a report of our management on our internal control over financial reporting. We are
also required to include certifications of our management regarding the effectiveness of our disclosure controls and procedures. We previously
identified a material weakness in our internal control over financial reporting relating to our tax review control for complex transactions.
We are in the process of enhancing our tax review control related to unusual transactions that we may encounter but, that control has
not operated for a sufficient time to determine if the control was effective as of December 31, 2020. If we cannot effectively maintain
our controls and procedures, we could suffer material misstatements in our financial statements and other information it reports which
would likely cause investors to lose confidence. This lack of confidence could lead to a decline in the trading price of our common stock.
Compliance with the Sarbanes-Oxley Act of 2002 will require substantial
financial and management resources and may increase the time and costs of completing an acquisition.
Section 404 of the Sarbanes-Oxley Act of 2002 requires that we evaluate
and report on our system of internal controls and may require us to have such system audited by an independent registered public accounting
firm. If we fail to maintain the adequacy of our internal controls, we could be subject to regulatory scrutiny, civil or criminal penalties
and/or shareholder litigation. Any inability to provide reliable financial reports could harm our business. Furthermore, any failure to
implement required new or improved controls, or difficulties encountered in the implementation of adequate controls over our financial
processes and reporting in the future, could harm our operating results or cause us to fail to meet our reporting obligations. Inferior
internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect
on the trading price of our securities.
The trading prices of our common stock could be volatile, which
could result in substantial losses to our shareholders and investors.
The trading prices of our common stock could be volatile and could
fluctuate widely due to factors beyond our control. This may happen because of broad market and industry factors, like the performance
and fluctuation in the market prices or the underperformance or deteriorating financial results of other similarly situated companies
that have listed their securities in the U.S. in recent years. The securities of some of these companies have experienced significant
volatility including, in some cases, substantial price declines in the trading prices of their securities. In addition, securities markets
may from time to time experience significant price and volume fluctuations that are not related to our operating performance, such as
the large decline in share prices in the United States and other jurisdictions.
In addition to market and industry factors, the price and trading volume
for our common stock may be highly volatile for factors specific to our own operations including the following:
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variations in our revenues, earnings and cash flow;
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announcements of new product and service offerings, investments,
acquisitions, strategic partnerships, joint ventures, or capital commitments by us or our competitors;
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changes in the performance or market valuation of our company
or our competitors;
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changes in financial estimates by securities analysts;
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changes in the number of our users and customers;
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fluctuations in our operating metrics;
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failures on our part to realize monetization opportunities as
expected;
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additions or departures of our key management and personnel;
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detrimental negative publicity about us, our competitors or
our industry;
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market conditions or regulatory developments affecting us or
our industry; and
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potential litigations or regulatory investigations.
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Any of these factors may result in large and sudden changes in the
trading volume and the price at which our common stock will trade. In the past, shareholders of a public company often brought securities
class action suits against the listed company following periods of instability in the market price of that company’s securities.
If we were involved in a class action suit, it could divert a significant amount of our management’s attention and other resources
from our business and operations, which could harm our results of operations and require us to incur significant expenses to defend the
suit. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the
future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have a material
adverse effect on our financial condition and results of operations.
If our common stock becomes subject to the SEC’s penny stock
rules, broker-dealers may experience difficulty in completing customer transactions, and trading activity in our securities may be adversely
affected.
If at any time we have net tangible assets of $5,000,001 or less and
our common stock has a market price per share of less than $5.00, transactions in our common stock may be subject to the “penny
stock” rules promulgated under the Exchange Act. Under these rules, broker-dealers who recommend such securities to persons other
than institutional accredited investors must:
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make a special written suitability determination for the purchaser;
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receive the purchaser’s written agreement to the transaction
prior to sale;
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provide the purchaser with risk disclosure documents which identify
certain risks associated with investing in “penny stocks” and which describe the market for these “penny stocks”
as well as a purchaser’s legal remedies; and
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obtain a signed and dated acknowledgment from the purchaser
demonstrating that the purchaser has actually received the required risk disclosure document before a transaction in a “penny
stock” can be completed.
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If our common stock becomes
subject to these rules, broker-dealers may find it difficult to effectuate customer transactions and trading activity in our securities
may be adversely affected. As a result, the market price of our common stock may be depressed, and you may find it more difficult to
sell our common stock.
An active trading market for our common stock may not develop, and
you may not be able to easily sell your common stock.
An active trading market for shares of our common stock following our
emergence from bankruptcy may never develop or be sustained. If an active trading market does not develop, you may have difficulty selling
your shares of common stock or at all. An inactive market may also impair our ability to raise capital by selling our common stock, and
it may impair our ability to attract and motivate our employees through equity incentive awards and our ability to acquire other companies
by using our common stock as consideration.
If we do not continue to satisfy the NYSE American continued listing
requirements, our common stock could be delisted.
The listing of our common stock on NYSE American is contingent on our
compliance with the NYSE American’s conditions for continued listing.
On September 11, 2020, we received a deficiency letter from NYSE American
notifying us of our non-compliance with NYSE American’s stockholders’ equity listing standards as set forth in Section 1003(a)(i)
- (iii) of the NYSE American Company Guide. Subsequently, we submitted a plan to the NYSE American to bring us into compliance with such
listing standards within 18 months of receipt of the deficiency letter. On November 25, 2020, we received a letter from the NYSE American
notifying us its acceptance of our plan and our continuing listing pursuant to an extension with a target completion date of March 11,
2022.
Should the NYSE American not accept our plan or if in the future, should
we fail to meet the NYSE American’s continuing listing requirements, we may be subject to delisting by the NYSE America. In the
event our common stock is no longer listed for trading on the NYSE American, our trading volume and share price may decrease and we may
experience difficulties in raising capital which could materially affect our operations and financial results. Further, delisting from
the NYSE American could also have other negative effects, including potential loss of confidence by partners, lenders, suppliers and employees.
Finally, delisting could make it harder for us to raise capital and sell securities.
Sales of a significant number of our common stock in the public
market, or the perception that such sales could occur, could depress the market price of our common stock.
In connection with a private placement of 2,870,927 (14,354,635 post-split)
shares of common stock that closed on September 30, 2021, we have filed a registration statement allowing the holders thereof to resell
the common stock. The sales of those shares of common stock in the public market could depress the market price of our common stock and
impair our ability to raise capital through the sale of additional equity securities. We cannot predict the effect that future sales of
our common stock would have on the market price of our common stock.
Selected Statement of Operations and Balance Sheet
Information
The following summary consolidated statements of income and comprehensive
income for the nine months ended September 30, 2021 and period from January 1, through September 29, 2021, and the selected balance sheet
information as September 29 and 30, 2021, and December 31, 2020, have been derived from our consolidated financial statements incorporated
by reference to this prospectus. On March 29, 2021, we and certain of our subsidiaries filed voluntary petitions for relief under Chapter
11 of the U.S. Bankruptcy Code in the Bankruptcy Court.
Fresh Start Accounting. Upon emergence from bankruptcy, we adopted
fresh start accounting in accordance with Accounting Standards Codification (ASC) Topic 852 – Reorganizations (ASC 852) and became
a new entity for financial reporting purposes. As a result, the consolidated financial statements after September 30, 2021 (“Effective
Date”) are not comparable with the consolidated financial statements on or before that date as indicated by the “black line”
division in the financial statements. References to “Successor” relate to our financial position and results of operations
after the Effective Date. References to “Predecessor” refer to the financial position and results of operations of the Company
and its subsidiaries on or before the Effective Date.
Our historical results for any period are not necessarily indicative
of results to be expected for any future period. You should read the following summary financial information in conjunction with the consolidated
financial statements and related notes and the information under “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” contained in our Form 10-Q for quarterly period ended September 30, 2021, incorporated by reference elsewhere
in this prospectus.
Selected Statements of Operations Information:
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Successor
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Predecessor
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September 30,
2021
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Period from
January 1,
2021 through
September
29,
2021
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Nine months ended
September 30,
2020
|
|
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
Operating lease revenue
|
|
$
|
-
|
|
|
$
|
5,753,900
|
|
|
$
|
12,395,800
|
|
Maintenance reserves revenue, net
|
|
|
-
|
|
|
|
-
|
|
|
|
221,400
|
|
Finance lease revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
56,300
|
|
Net (loss)/gain on disposal of assets
|
|
|
-
|
|
|
|
(194,900
|
)
|
|
|
8,700
|
|
Other income/(loss)
|
|
|
-
|
|
|
|
2,700
|
|
|
|
(23,200
|
)
|
Total revenues and other income
|
|
|
-
|
|
|
|
5,561,700
|
|
|
|
12,659,000
|
|
Loss from operating
|
|
|
-
|
|
|
|
14,270,100
|
|
|
|
43,827,400
|
|
Net income (loss)
|
|
$
|
-
|
|
|
$
|
18,900,100
|
|
|
$
|
(27,777,200
|
)
|
Income (loss) per share*:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
-
|
|
|
$
|
2.45
|
|
|
$
|
(3.59
|
)
|
Diluted
|
|
$
|
-
|
|
|
$
|
2.45
|
|
|
$
|
(3.59
|
)
|
Weighted average shares used in income (loss) per share computations*:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
22,084,055
|
|
|
|
7,729,420
|
|
|
|
7,729,420
|
|
Diluted
|
|
|
22,084,055
|
|
|
|
7,729,420
|
|
|
|
7,729,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
-
|
|
|
|
18,900,100
|
|
|
|
(27,777,200
|
)
|
Other comprehensive income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on derivative instruments
|
|
|
-
|
|
|
|
-
|
|
|
|
(575,000
|
)
|
Reclassification of net unrealized losses on derivative instruments to interest expense
|
|
|
-
|
|
|
|
2,600
|
|
|
|
1,706,200
|
|
Tax expense related to items of other comprehensive loss
|
|
|
-
|
|
|
|
(600
|
)
|
|
|
(243,200
|
)
|
Other comprehensive income
|
|
|
-
|
|
|
|
2,000
|
|
|
|
888,000
|
|
Total comprehensive income (loss)
|
|
|
-
|
|
|
|
18,902,100
|
|
|
|
(26,889,200
|
)
|
Selected Balance Sheet Information:
|
|
Successor
|
|
|
Predecessor
|
|
|
|
September 30,
|
|
|
September 29,
|
|
|
December 31,
|
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,625,600
|
|
|
$
|
10,527,200
|
|
|
$
|
2,408,700
|
|
Total assets
|
|
|
18,883,100
|
|
|
|
45,245,400
|
|
|
|
93,377,800
|
|
Total liabilities
|
|
|
1,878,300
|
|
|
|
54,862,100
|
|
|
|
110,994,100
|
|
Stockholders’ deficit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Common stock, $0.001 par value, 40,000,000 shares authorized, 22,084,055, 7,729,420 and 7,729,420 shares outstanding at September 30, 2021, September 29, 2021 and December 31, 2020*
|
|
|
22,100
|
|
|
|
7,700
|
|
|
|
7,700
|
|
Paid-in capital*
|
|
|
16,982,700
|
|
|
|
16,811,900
|
|
|
|
16,776,900
|
|
Accumulated deficit
|
|
|
-
|
|
|
|
(23,399,000
|
)
|
|
|
(31,361,600
|
)
|
Accumulated other comprehensive loss
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,000
|
)
|
|
|
|
17,004,800
|
|
|
|
(6,579,400
|
)
|
|
|
(14,579,000
|
)
|
Treasury stock at cost, 0, 1,066,600 and 1,066,660 shares at September 30, 2021, September 29, 2021 and December 31, 2020*
|
|
|
-
|
|
|
|
(3,037,300
|
)
|
|
|
(3,037,300
|
)
|
Total stockholders’ deficit
|
|
|
17,004,800
|
|
|
|
(9,616,700
|
)
|
|
|
(17,616,300
|
)
|
Total liabilities and stockholders’ deficit
|
|
$
|
18,883,100
|
|
|
$
|
45,245,400
|
|
|
$
|
93,377,800
|
|
|
*
|
Retrospectively restated to give effect to five for one forward
stock split effective December 30, 2021.
|
PRIVATE PLACEMENT OF SECURITIES
On September 30, 2021 we entered into and consummated the transactions
contemplated by a Securities Purchase Agreement with nine investors pursuant to which we issued and sold 2,870,927 (14,345,635 post-split)
shares of common stock, par value $0.001 per share at $3.85 for each share of common stock, for an aggregate purchase price of approximately
$11,053,069.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We are required to file annual, quarterly and special reports, proxy
statements and other information with the SEC. Our filings with the SEC are also available to the public at the SEC’s Internet web
site at http://www.sec.gov.
We have filed a registration statement, of which this prospectus is
a part, covering the securities offered hereby. As allowed by SEC rules, this prospectus does not include all of the information contained
in the registration statement and the included exhibits, financial statements and schedules. You are referred to the registration statement,
the included exhibits, financial statements and schedules for further information. This prospectus is qualified in its entirety by such
other information.
We are subject to the information and periodic reporting requirements
of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and, in accordance therewith, file periodic reports, proxy statements
and other information with the SEC. Such periodic reports, proxy statements and other information are available to the public over the
Internet at the website of the SEC referred to above. We maintain a website at http://www.aerocentury.com. The reference to our website
address does not constitute incorporation by reference of the information contained on our website, and you should not consider the contents
of our website in making an investment decision with respect to our common stock.
INCORPORATION OF INFORMATION BY REFERENCE
The SEC allows us to “incorporate by reference” the information
we file with it, which means that we can disclose important information to you by referring you to those documents. The information we
incorporate by reference is an important part of this prospectus, and certain information that we will later file with the SEC will automatically
update and supersede this information. We incorporate by reference the documents listed below, as well as any future filings made with
the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act from the date of the initial registration statement and prior to
the effectiveness of this registration statement, and any filings made after the date of this prospectus until we sell all of the securities
under this prospectus, except that we do not incorporate any document or portion of a document that was furnished and deemed by the rules
of the SEC not to have been filed:
|
●
|
Our annual report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on April 15, 2021;
|
|
●
|
Our quarterly reports on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 filed with the SEC
on May 21, 2021, August 23, 2021, and November 19, 2021, respectively;
|
|
●
|
Our Current Reports on Form 8-K (other than information furnished rather than filed) filed with the SEC
on May 25, 2021; August
10, 2021 as amended on August 13,
2021; August 17, 2021; August
31, 2021; September 29, 2021; October
1, 2021; October 8,
2021; October 25,
2021; November 4,
2021; December 17, 2021 (regarding an amendment to Mr. Yucheng's employment agreement); December 29, 2021; and January 3, 2022.
|
|
●
|
Our Schedule 14C filed with the SEC on December 3, 2021; and
|
|
●
|
The description of our common stock contained in our Form 8-A/A filed with the SEC on February 5, 1999, including any amendment or
report filed for the purpose of updating such description.
|
Additionally, all reports and other documents subsequently filed by
us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act, except as to any portion of any report or document that is not
deemed filed under such provisions, (i) after the effective date the registration statement containing this prospectus and (ii) until
the earlier of the date on which all the securities registered hereunder have been sold or the registration statement of which this prospectus
is a part has been withdrawn, shall be deemed to be incorporated by reference in this prospectus and to be part hereof from the date of
filing of such reports and other documents. Any information that we subsequently file with the SEC that is incorporated by reference as
described above will automatically update and supersede any previous information that is part of this prospectus. Nothing in this prospectus
shall be deemed to incorporate information furnished but not filed with the SEC pursuant to Items 2.02, 7.02 or 9.01 of Form 8-K.
Upon written or oral request, we will provide without charge to each
person to whom a copy of the prospectus is delivered a copy of the documents incorporated by reference herein (other than exhibits to
such documents, unless such exhibits are specifically incorporated by reference herein). You may request a copy of these filings, at no
cost, by writing or telephoning us at the following address: 3000 El Camino Real, Bldg. 4, Suite 200, Palo Alto, CA; Attention: Corporate
Secretary, Telephone (650) 340-1888.
SELLING STOCKHOLDERS
This prospectus covers the possible resale by the selling stockholders
identified in the table below of 8,760,935 shares of common stock. The selling stockholders may sell some, all or none of their shares
of common stock. We do not know how long the selling stockholders will hold the shares of common stock before selling them, and we currently
have no agreements, arrangements or understandings with the selling stockholders regarding the sale of any of the shares.
The following table presents information regarding the selling stockholders
and the shares that each may offer and sell from time to time under this prospectus. The table is prepared based on information supplied
to us by the selling stockholders relating to such shares, including (i) all of the shares offered hereby, and (ii) to our knowledge,
all other securities held by each of the selling stockholders as of the date hereof, and reflects their respective holdings as of December
31, 2021. Except for the ownership of shares of capital stock and as described below, each selling stockholder has not had any material
relationship with us within the past three years except as noted. Beneficial ownership is determined in accordance with Section 13(d)
of the Exchange Act and Rule 13d-3 thereunder. The percentage of shares beneficially owned prior to the offering is based on 22,084,055
shares of our common stock actually outstanding as of December 31, 2021.
|
|
Shares
Beneficially
Owned
Before
|
|
|
Shares to
be Sold in
this
|
|
|
Shares Beneficially
Owned After Offering
|
|
Name of Selling Stockholder
|
|
this Offering
|
|
|
Offering
|
|
|
Number
|
|
|
Percentage
|
|
Yucheng Hu *
Group 7,Yantai Village, Liaoye Town,
Yingshan, Sichuan, China 637700
|
|
|
7,991,005
|
|
|
|
2,397,305
|
|
|
|
5,593,700
|
|
|
|
25.3
|
%
|
TongTong Ma
4-3-8 Guofeng Community, Congtai District,
Handan, Hebei, China 056000
|
|
|
909,090
|
|
|
|
909,090
|
|
|
|
0
|
|
|
|
-
|
|
Qiang Zhang
Group 6,Yantai Village, Liaoye Town,
Yingshan, Sichuan, China 637700
|
|
|
1,038,960
|
|
|
|
1,038,960
|
|
|
|
0
|
|
|
|
-
|
|
Yanhua Li
58 Litao Hutong, Fusan Village, Dianshang,
Handan, Hebei, China 057350
|
|
|
974,025
|
|
|
|
974,025
|
|
|
|
0
|
|
|
|
-
|
|
Yiyi Huang
Huoli Kangcheng Community, Houjiatang Street,
Yuhua District, Changsha, Hunan, China 410000
|
|
|
844,155
|
|
|
|
844,155
|
|
|
|
0
|
|
|
|
-
|
|
Yu Wang
D1988 Jindi Sanqianfu, Leifeng Road,
Wangcheng, Changsha, Hunan, China 410000
|
|
|
259,740
|
|
|
|
259,740
|
|
|
|
0
|
|
|
|
-
|
|
Hao Yang
G2-102 Xinchengshijia, Renmin East Road 398,
Changsha, Hunan, China 410000
|
|
|
1,038,960
|
|
|
|
1,038,960
|
|
|
|
0
|
|
|
|
-
|
|
Jing Li
6 Floor, Sigma Plaza, No. 49 Zhichun Road,
Haidian District, Beijing, China 100000
|
|
|
909,090
|
|
|
|
909,090
|
|
|
|
0
|
|
|
|
-
|
|
Yeh Cheng
World Trade Apartment, Building B,
Apartment 5e, Beijing,China 100001
|
|
|
389,610
|
|
|
|
389,610
|
|
|
|
0
|
|
|
|
-
|
|
|
*
|
Mr Hu is our Chairman of the Board, Chief Executive Officer and President.
|
DESCRIPTION OF OUR CAPITAL STOCK
The selling stockholders may, from time to time, sell, transfer, or
otherwise dispose of any or all of their shares of common stock or interests in shares of common stock on any stock exchange, market,
or trading facility on which the shares are traded or in private transactions at fixed prices, at prevailing market prices at the time
of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.
This prospectus provides you with a general description of the common stock the selling stockholders may offer.
The description below of our capital stock and provisions of our second
amended and restated certificate of incorporation and second amended and restated bylaws are summaries and are qualified by reference
to the second amended and restated certificate of incorporation and the second amended and restated bylaws. These documents are filed
as exhibits to the registration statement of which this prospectus is a part.
The total number of shares of all classes of capital stock which we
have authority to issue is 42,000,000 shares of capital stock, consisting of (i) 40,000,000 shares of common stock, par value $0.001 per
share, and (ii) 2,000,000 shares of preferred stock, par value $0.001 per share. As of December 31, 2021, there were no outstanding shares
of preferred stock and 22,084,055 outstanding shares of common stock.
Common Stock
Holders of our common stock are entitled to one vote per share for
each share held of record on all matters submitted to a vote of stockholders and do not have cumulative voting rights. Our second amended
and restated certificate of incorporation does not provide for cumulative voting. Subject to preferences that may be applicable to any
outstanding preferred stock, the holders of our common stock are entitled to receive ratably such dividends, if any, as may be declared
by our board of directors out of legally available funds. Upon liquidation, dissolution or winding-up, the holders of our common stock
are entitled to share ratably in all of our assets which are legally available for distribution, after payment of or provision for all
liabilities and the liquidation preference of any outstanding preferred stock. The holders of our common stock have no preemptive, subscription,
redemption or conversion rights. Our common stock is currently listed on the NYSE American under the symbol “ACY.”
Preferred Stock
The board of directors has the authority, without further action by
the stockholders, to issue up to 2,000,000 shares of preferred stock, $0.001 par value per share, in one or more series. The board of
directors will also have the authority to designate the rights, preferences, privileges and restrictions of each such series, including
dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences, and
the number of shares constituting any series.
The issuance of preferred stock may have the effect of delaying, deferring
or preventing a change in control of the company without further action by the stockholders. The issuance of preferred stock with voting
and conversion rights may also adversely affect the voting power of the holders of common stock. In certain circumstances, an issuance
of preferred stock could have the effect of decreasing the market price of the common stock.
Anti-Takeover Effects of Provisions of our Second Amended and Restated
Certificate of Incorporation and Second Amended and Restated Bylaws
Our second amended and restated certificate of incorporation and our
second amended and restated bylaws contain certain provisions that could have the effect of delaying, deterring or preventing another
party from acquiring control of us. These provisions and certain provisions of Delaware law, which are summarized below, are expected
to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed, in part, to encourage persons
seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection
of our potential ability to negotiate more favorable terms with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging
a proposal to acquire us.
Undesignated Preferred Stock
As discussed above, our board of directors will have the ability to
issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us.
These and other provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of our company.
Limits on Ability of Stockholders to Call a Special Meeting
Our second amended and restated bylaws provide that special meetings
of the stockholders may be called only by the majority of our board of directors or by stockholders owning at least 25% of our outstanding
common stock, which may delay the ability of our stockholders to force consideration of a proposal.
Requirements for Advance Notification of Stockholder Nominations and
Proposals
Our second amended and restated bylaws require advance notice procedures
with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at
the direction of our board of directors or a committee of our board of directors. These provisions may have the effect of precluding
the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may also discourage or deter
a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting
to obtain control of our company.
No Cumulative Voting
Our second amended and restated certificate of incorporation and second
amended and restated bylaws does not permit cumulative voting in the election of directors. Cumulative voting allows a stockholder to
vote a portion or all of its shares for one or more candidates for seats on the board of directors. Without cumulative voting, a minority
stockholder may not be able to gain as many seats on our board of directors as the stockholder would be able to gain if cumulative voting
were permitted. The absence of cumulative voting makes it more difficult for a minority stockholder to gain a seat on our board of directors
to influence our board’s decision regarding a takeover.
Delaware Anti-Takeover Statute
We are subject to the provisions of Section 203 of the Delaware General
Corporate Law, or DGCL, regulating corporate takeovers. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging,
under certain circumstances, in a business combination with an interested stockholder for a period of three years following the date
the person became an interested stockholder unless:
|
●
|
prior to the date of the transaction, our board of directors approved either the business combination or the transaction which resulted
in the stockholder becoming an interested stockholder;
|
|
●
|
upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder
owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, calculated as provided under
Section 203; or
|
|
●
|
at or subsequent to the date of the transaction, the business combination is approved by our board of directors and authorized at
an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding
voting stock which is not owned by the interested stockholder.
|
Generally, a business combination includes a merger, asset or stock
sale, or other transaction resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who,
together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did
own 15% or more of a corporation’s outstanding voting stock. We expect the existence of this provision to have an anti-takeover
effect with respect to transactions our board of directors does not approve in advance. We anticipate that Section 203 may also discourage
attempts that might result in a premium over the market price for the shares of common stock held by stockholders.
The provisions of Delaware law and the provisions of our second amended
and restated certificate of incorporation and second amended and restated bylaws, as amended upon the completion of this offering, could
have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they might also inhibit temporary fluctuations
in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions might also
have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish
transactions that stockholders might otherwise deem to be in their best interests.
Forum Selection
Our second amended and restated certificate of incorporation
provides that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware
is the sole and exclusive forum for:
|
●
|
any derivative action or proceeding brought on our behalf;
|
|
●
|
any action asserting a breach of fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders;
|
|
●
|
any action asserting a claim against us arising pursuant to any provisions of the DGCL, our second amended and restated certificate
of incorporation or our second amended and restated bylaws; or
|
|
●
|
any action asserting a claim against us that is governed by the internal affairs doctrine.
|
These exclusive-forum provisions may limit a stockholder’s
ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other
employees, which may discourage lawsuits against us and our directors, officers and other employees. Furthermore, the enforceability
of similar choice of forum provisions in other companies’ charter documents has been challenged in legal proceedings, and it
is possible that a court could find these types of provisions to be inapplicable or unenforceable. If a court were to find either
exclusive-forum provision in our second amended and restated certificate of incorporation to be inapplicable or unenforceable in an
action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could harm our
business.
These exclusive-forum provisions are not intended to apply to any
causes of action arising under the Securities Act or the Exchange Act or any other claim for which the federal courts have exclusive
jurisdiction.
Listing
Our common stock is listed on the NYSE American under the symbol “ACY”.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Continental
Stock, 1 State Street 30th Floor, New York, NY 10004-1561.
USE OF PROCEEDS
We are registering shares of our common stock for the selling stockholders.
We will not receive any of the proceeds from any sale or other disposition of the common stock covered by this prospectus. All proceeds
from the sale of the common stock will be paid directly to the selling stockholders.
PLAN OF DISTRIBUTION
The selling stockholders, including their transferees, donees, pledgees,
assignees and successors-in-interest, may, from time to time, sell, transfer or otherwise dispose of any or all of the shares of common
stock offered by this prospectus from time to time on any stock exchange, market or trading facility on which the shares are traded or
in private transactions. These dispositions may be at fixed prices, at market prices prevailing at the time of sale, at prices related
to prevailing market price, at varying prices determined at the time of sale or at negotiated prices. The selling stockholders may use
any one or more of the following methods when selling shares:
|
●
|
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
|
|
●
|
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
as principal to facilitate the transaction;
|
|
●
|
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
|
|
●
|
an exchange distribution in accordance with the rules of the applicable exchange;
|
|
●
|
privately negotiated transactions;
|
|
●
|
broker-dealers may agree with a selling stockholder to sell a specified number of such shares at a stipulated price per share;
|
|
●
|
a combination of any such methods of sale;
|
|
●
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through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; and
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●
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any other method permitted pursuant to applicable law.
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The selling stockholders may also sell shares under Rule 144 under
the Securities Act, if available, rather than under this prospectus.
Broker-dealers engaged by the selling stockholders may arrange for
other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders or,
if any broker-dealer acts as agent for the purchaser of shares, from the purchaser in amounts to be negotiated. The selling stockholders
do not expect these commissions and discounts relating to its sales of shares to exceed what is customary in the types of transactions
involved.
The selling stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in short sales of the common stock in the course of hedging
the positions they assume. The selling stockholders may also sell shares of our common stock short and deliver these securities to close
out its short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders
may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative
securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which
shares such broker-dealer or other financial institution may resell pursuant to this prospectus, as supplemented or amended to reflect
such transaction.
The selling stockholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be “underwriters” within the meaning of the Securities Act in connection
with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares
purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. The selling stockholders have informed
us that they do not have any agreement or understanding, directly or indirectly, with any person to distribute the common stock.
Because each of the selling stockholders may be deemed to be an “underwriter”
within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act. In addition,
any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule
144 rather than under this prospectus. The selling stockholders have advised us that they have not entered into any agreements, understandings
or arrangements with any underwriter or broker-dealer regarding the sale of the resale shares.
The shares will be sold only through registered or licensed brokers
or dealers if required under applicable state securities laws. In addition, in certain states, the shares may not be sold unless they
have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement
is available and is complied with.
Under applicable rules and regulations under the Exchange Act, any
person engaged in the distribution of the shares may not simultaneously engage in market making activities with respect to our common
stock for a period of two business days prior to the commencement of the distribution. In addition, the selling stockholders will be
subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit
the timing of purchases and sales of shares of our common stock by the selling stockholders or any other person. We will make copies
of this prospectus available to the selling stockholders and have informed the selling stockholders of the need to deliver a copy of
this prospectus to each purchaser at or prior to the time of the sale.
We will not receive any proceeds from the sale of the shares by the
selling stockholders.
LEGAL MATTERS
Lewis Brisbois Bisgaard & Smith LLP, San Francisco, CA will pass
upon legal matters in connection with the validity of the common stock offered hereby.
EXPERTS
The consolidated financial statements as of December 31, 2020 and 2019
and for the years then ended incorporated by reference in this prospectus and in the Registration Statement have been so incorporated
in reliance on the report of BDO USA, LLP, an independent registered public accounting firm, incorporated herein by reference, given on
the authority of said firm as experts in auditing and accounting. The report on the consolidated financial statements contains an explanatory
paragraph regarding the Company's ability to continue as a going concern.
CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT
On September 22, 2021, BDO USA, LLP (“BDO”) resigned as
the independent accountant that was previously engaged as the principal accountant to audit our financial statements. BDO’s reports
on our financial statements for the fiscal years ended December 31, 2019 and 2020 included an explanatory paragraph which indicated that
there was substantial doubt as to our ability to continue as a going concern. BDO’s reports did not contain an adverse opinion or
disclaimer of opinion, and were otherwise not qualified or modified as to uncertainty, audit scope or accounting principles, except for
the going concern matter. The resignation of BDO was accepted by the Board of Directors of the Company on September 22, 2021. During the
fiscal years ended December 21, 2019 and 2020, and through the interim period ended September 22, 2021, there were no disagreements with
BDO on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not
resolved to BDO’s satisfaction, would have caused it to make reference to the subject matter of the disagreement(s) in connection
with its report on any of our financial statements for such periods. During the fiscal years ended December 31, 2019 and 2020 and the
subsequent interim period through September 22, 2021, there were no reportable events (as that term is described in Item 304(a)(1)(v)
of Regulation S-K), except as previously disclosed, there was a material weakness in our internal control over financial reporting related
to our tax review control for complex transactions.
On
October 23, 2021, the Board of Directors, acting upon the recommendation of the Audit Committee, approved the engagement of Audit Alliance
LLP (“AA”), effective as of October 23, 2021, to serve as the Company’s independent registered public accounting firm
for the year ending December 31, 2021.
During the two most recent fiscal
years ended December 31, 2020 and 2019 and through the date the Company selected AA as its independent registered public accounting firm,
neither the Company nor anyone on behalf of the Company consulted AA regarding any accounting or auditing issues involving the Company,
including (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the Company’s financial statements, or (ii) any matter that was the subject of a “disagreement”
(as defined in Item 304(a)(1)(iv) of Regulation S-K of the Securities Exchange Act of 1934, as amended, and the related instructions
to Item 304 of Regulation S-K) or a “reportable event” (as defined in Item 304(a)(1)(v) of Regulation S-K).
INTERESTS OF NAMED EXPERTS AND COUNSEL
Except as noted below, no expert or counsel named in this prospectus
as having prepared or certified any part of this prospectus or having given an opinion upon the validity of the securities being registered
or upon other legal matters in connection with the registration or offering of the securities was employed on a contingency basis, or
had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any of its parents
or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing
or principal underwriter, voting trustee, director, officer, or employee.
PART II - INFORMATION NOT
REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The estimated expenses payable by the registrant in connection with
the issuance and distribution of the securities being registered are as follows:
SEC Registration Fee
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|
$
|
7,244.28
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|
Legal Fees and Expenses*
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|
|
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Accounting Fees and Expenses*
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|
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Miscellaneous Fees and Expenses*
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|
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Total:
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|
$
|
|
|
*
|
Estimated solely for the
purposes of this Item. Actual expenses may vary.
|
Item 14. Indemnification of Directors and Officers
The Registrant’s Second Amended and Restated Certificate of
Incorporation and Second Amended and Restated Bylaws provides that the Registrant shall indemnify its directors, officers employees and
agents to the fullest extent permitted by the General Corporation Law of the State of Delaware.
Sections 145 and 102(b)(7) of the General Corporation Law of the State
of Delaware provide that a corporation may indemnify any person made a party to an action by reason of the fact that he or she was a
director, executive officer, employee or agent of the corporation or is or was serving at the request of a corporation against expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in
connection with such action if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to,
the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe his
or her conduct was unlawful, except that, in the case of an action by or in right of the corporation, no indemnification may generally
be made in respect of any claim as to which such person is adjudged to be liable to the corporation.
Item 15. Recent Sales of Unregistered Securities
In the three years preceding the filing of this registration statement,
we issued the securities described below without registration under the Securities Act. Unless otherwise indicated below, the securities
were issued pursuant to the private placement exemption provided by Section 4(a)(2) of the Securities Act.
On September 30, 2021 we entered into and consummated the transactions
contemplated by a Securities Purchase Agreement with nine investors pursuant to which we issued and sold 2,870,927 (14,354,635 post-split)
shares of common stock, par value $0.001 per share at $3.85 for each share of common stock, for an aggregate purchase price of approximately
$11,053,069.
Item 16. Exhibits and Financial Statement Schedules
(a) Exhibits
3.1.1
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Second Amended and Restated Certificate of Incorporation of AeroCentury Corp (Incorporated herein by reference to Exhibit 3.1 to the registrant’s Report on Form 8-K filed with the SEC on October 1, 2021).
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3.1.2
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Certificate of Amendment to the Certificate of Incorporation of AeroCentury Corp. (Incorporated herein by reference to Exhibit 3.1 to the registrant’s Report on Form 8-K filed with the SEC on December 29, 2021).
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3.2
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Second Amended and Restated Bylaws of AeroCentury Corp (Incorporated herein by reference to Exhibit 3.2 to the registrant’s Report on Form 8-K filed with the SEC on October 1, 2021).
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5.1
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Opinion of Lewis Brisbois Bisgaard & Smith LLP
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10.1
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Membership Interest Purchase Agreement, dated March 16, 2021, between the Company and Drake Jet Leasing 10 LLC, incorporated herein by reference to that certain Exhibit 10.1 Report on Form 8-K filed by the Company with the SEC on March 22, 2021.
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10.2
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Borrower Parent Transfer Agreement, made as of March 16, 2021 among the Company, Drake Jet Leasing 10 LLC; ACY E-175 LLC; Norddeutsche Landesbank Girozentrale, New York Branch, Norddeutsche Landesbank Girozentrale, and Wilmington Trust Company, a Delaware Trust Company, incorporated herein by reference to that certain Exhibit 10.2 Report on Form 8-K filed by the Company with the SEC on March 22, 2021.
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10.3
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|
Side
Letter No. 1, dated as of March 16, 2021, by and between the Company, Drake Asset Management Jersey Limited, Drake Jet Leasing 10
LLC and UMB Bank, N.A, incorporated herein by reference to that certain Exhibit 10.3 to the Report on Form 8-K filed by the Company
with the SEC on March 22, 2021.
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10.4
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Plan
Sponsor Agreement, dated as of August 16, 2021, by and among AeroCentury Corp., JetFleet Holding Corp., and JetFleet Management Corp.
and Yucheng Hu, Hao Yang, Jing Li, Yeh Cheng, Yu Wang, TongTong Ma, Qiang Zhang, Yanhua Li, and Yiyi Huang. (Incorporated herein
by reference to Exhibit 10.1 to the registrant’s Report on Form 8-K filed with the SEC on October 1, 2021).
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10.5
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Securities
Purchase Agreement, dated as of September 30, 2021, by and among Aerocentury Corp, the Plan Sponsor, and Yucheng Hu, in the capacity
as the representative for the Plan Sponsor. (Incorporated herein by reference to Exhibit 10.2 to the registrant’s Report on
Form 8-K filed with the SEC on October 1, 2021).
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10.6
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Series
A Preferred Stock Purchase Agreement, dated as of September 30, 2021, by and between JetFleet Holding Corp. and AeroCentury Corp.
(Incorporated herein by reference to Exhibit 10.3 to the registrant’s Report on Form 8-K filed with the SEC on October 1, 2021).
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10.7
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Form
of Independent Director Agreement (Incorporated herein by reference to Exhibit 10.4 to the registrant’s Report on Form 8-K
filed with the SEC on October 1, 2021).
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10.8
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Form
of Employment Agreement (Incorporated herein by reference to Exhibit 10.5 to the registrant’s Report on Form 8-K filed with
the SEC on October 1, 2021).
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10.9+
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Employment
Agreement by and between AeroCentury Corp and Florence Ng, dated as of October 1, 2021 (Incorporated herein by reference to Exhibit
10.6 to the registrant’s Report on Form 8-K filed with the SEC on October 1, 2021).
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10.10+
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Amendment to Employment Agreement by and between AeroCentury Corp and Florence Ng, dated as of November 1, 2021 (Incorporated herein by reference to Exhibit 10.1 to the registrant’s Report on Form 8-K filed with the SEC on November 4, 2021).
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10.11+
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Employment Agreement by and between AeroCentury Corp and Yucheng Hu, dated as of December 16, 2021 (Incorporated herein by reference to Exhibit 10.1 to the registrant’s Report on Form 8-K filed with the SEC on December 17, 2021).
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10.12
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2021 Equity Incentive Plan (Incorporated herein by reference to Exhibit 10.1 to the registrant’s Report on Form 8-K filed with the SEC on January 3, 2022).
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21.1
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Subsidiaries of AeroCentury Corp.
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23.1
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Consent of BDO USA, LLP, Independent Registered Public Accounting Firm
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23.2
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Consent
of Lewis Brisbois Bisgaard & Smith LLP (included in Exhibit 5.1)
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24.1
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Power
of Attorney (included on the signature page to this registration statement) Indicates a management contract or compensatory plan
or arrangement.
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(b) Schedules - N/A
Item 17. Undertakings
(a) The undersigned registrant hereby undertakes:
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(1)
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To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement:
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(i)
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To include any prospectus required by section 10(a)(3) of the Securities
Act of 1933.
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(ii)
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To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change in the information
set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease
in volume of securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant
to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than
a 20% change in the maximum aggregate offering price set forth in the “Calculation
of Registration Fee” table in the effective registration statement.
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(iii)
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To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any material change
to such information in the registration statement.
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Provided, however, that (B) paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii)
above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports
filed with or furnished to the SEC by the registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement.
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(2)
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That, for the purpose of determining any liability under the Securities
Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
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(3)
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To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of the offering.
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(5)
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That, for the purpose of determining liability under the Securities
Act of 1933 to any purchaser:
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(i)
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If the registrant is relying on Rule 430B:
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(A)
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Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall
be deemed to be part of the registration statement as of the date the filed prospectus was
deemed part of and included in the registration statement; and
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(B)
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Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5)
or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering
made pursuant to Rule 415(a)(1)(i), (vii) or (x) for the purpose of providing the information
required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and
included in the registration statement as of the earlier of the date such form of prospectus
is first used after effectiveness or the date of the first contract of sale of securities
in the offering described in the prospectus. As provided in Rule 430B, for liability purposes
of the issuer and any person that is at that date an underwriter, such date shall be deemed
to be a new effective date of the registration statement relating to the securities in the
registration statement to which that prospectus relates, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof. Provided, however,
that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement will, as
to a purchaser with a time of contract of sale prior to such effective date, supersede or
modify any statement that was made in the registration statement or prospectus that was part
of the registration statement or made in any such document immediately prior to such effective
date; or
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(ii)
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If the registrant is subject to Rule 430C, each prospectus filed
pursuant to Rule 424(b) as part of a registration statement relating to an offering, other
than registration statements relying on Rule 430B or other than prospectuses filed in reliance
on Rule 430A, shall be deemed to be part of and included in the registration statement as
of the date it is first used after effectiveness.
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Provided, however, that no statement made in a registration statement
or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into
the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of
sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part
of the registration statement or made in any such document immediately prior to such date of first use.
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(b)
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The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section
13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s
annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration
statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
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(i)
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The undersigned registrant hereby undertakes that:
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(1)
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for purposes of determining any liability under the Securities
Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A
and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act of
1933 shall be deemed to be part of this registration statement as of the time it was declared effective.
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(2)
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The undersigned registrant hereby undertakes that, for the purpose
of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
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Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in
Item 14 above, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person
of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended,
the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in
the City of Palo Alto, State of California, on this 18th day of January, 2022.
|
AeroCentury Corp.
|
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Dated: January 18, 2022
|
By:
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/s/ Yucheng Hu
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Yucheng Hu
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Chief Executive Officer
(Principal Executive Officer)
|
Dated: January 18, 2022
|
By:
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/s/ Qin (Carol) Wang
|
|
|
Qin (Carol) Wang
|
|
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Chief Financial Officer
(Principal Financial and
Principal Accounting Officer)
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POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each individual whose signature
appears below constitutes and appoints Yucheng Hu and as attorney-in-fact, with the power of substitution, for him and in his name, place
and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement,
and to file the same, with all exhibits thereto and all documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and
thing requisite and necessary to be done, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that such attorneys-in-fact and agents or any of them, or their substitute or substitutes, may lawfully do or cause
to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
Signature
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Title
|
|
Date
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|
|
|
|
|
/s/ Yucheng Hu
|
|
Chairman
of the Board, Chief Executive Officer and President
|
|
January
18, 2022
|
Yucheng Hu
|
|
|
|
|
|
|
|
|
|
/s/ Florence Ng
|
|
Director
|
|
January
18, 2022
|
Florence Ng
|
|
|
|
|
|
|
|
|
|
/s/ Jianan Jiang
|
|
Director
|
|
January
18, 2022
|
Jianan
Jiang
|
|
|
|
|
|
|
|
|
|
/s/ Qin Yao
|
|
Director
|
|
January
18, 2022
|
Qin
Yao
|
|
|
|
|
|
|
|
|
|
/s/ Siyuan Zhu
|
|
Director
|
|
January
18, 2022
|
Siyuan
Zhu
|
|
|
|
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II-5
Grafico Azioni Aerocentury (AMEX:ACY)
Storico
Da Mar 2025 a Mar 2025
Grafico Azioni Aerocentury (AMEX:ACY)
Storico
Da Mar 2024 a Mar 2025