Company: CRAC
Filing Date: 2025-09-24
Form Type: S-1/A
Source: 0001213900-25-090802
Chunk: 292

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-09-24
Form: S-1/A
Chunk 292
---
 for an adjustment to the number of Class A ordinary shares for which the Share Right may be exercised or to the exercise price of the Share Right in certain events, as discussed in the section of this prospectus captioned “Description of Securities — Share Rights.” An adjustment which has the effect of preventing dilution generally is not taxable. The U.S. Holders of the Share Rights would, however, be treated as receiving a constructive distribution from us if, for example, the adjustment increases such U.S. Holders’ proportionate interest in our assets or earnings and profits (e.g., through an increase in the number of Class A ordinary shares that would be obtained upon exercise or through a decrease to the exercise price, including, for example, the decrease to the exercise price of the Share Rights where additional Class A ordinary shares or equity -linkedsecurities are issued in connection with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per ordinary share, as described under “Description of Securities — Share Rights”) as a result of a distribution of cash or other property to the holders of our Class A ordinary shares which is taxable to the U.S. Holders of such Class A ordinary shares as described under “— Taxation of Distributions” above. Such constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. Holders of the Share Rights received a cash distribution from us equal to the fair market value of such increased interest and generally would increase the U.S. Holder’s adjusted tax basis in its Share Rights to the extent that such distribution is treated as a dividend. For certain information reporting purposes, we are required to determine the date and amount of any such constructive distributions. Proposed Treasury regulations, which we may rely on prior to the issuance of final regulations, specify how the date and amount of constructive distributions are determined. 179 Taxation on the Disposition of Class A Ordinary Shares, Warrants, and Share Rights Subject to the PFIC rules discussed below, a U.S. Holder generally will recognize capital gain or loss upon a sale or other taxable disposition of our Class A ordinary shares, warrants, or Share Rights which, in general, would include a redemption of Class A ordinary shares, warrants, or Share Rights that is treated as a sale of such securities as described below, and including as a result of a dissolution and liquidation in the event we do not consummate an initial business combination within the required time period. The amount of gain