Company: APXIF
Filing Date: 2025-03-31
Form Type: F-4/A
Source: 0001213900-25-026339
Chunk: 329

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: F-4/A
Chunk 329
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 exercised. In such case, subject to the PFIC rules discussed below, the U.S. Holder would recognize capital gain or loss with respect to the Company Warrants deemed surrendered in an amount equal to the difference between the fair market value of the Company Shares that would have been received in a regular exercise of the Company Warrants deemed surrendered and the U.S. Holder’s tax basis in the Company Warrants deemed surrendered. In this case, a U.S. Holder’s aggregate tax basis in the Company Shares received would equal the sum of the U.S. Holder’s tax basis in the Company Warrants deemed exercised and the aggregate exercise price of such Company Warrants. It is unclear whether a U.S. Holder’s holding period for the Company Shares would commence on the date of exercise of the Company Warrants or the day following the date of exercise of the Company Warrants; in either case, the holding period will not include the period during which the U.S. Holder held the Company Warrants. Due to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with respect to Company Shares received, there can be no assurance regarding which, if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of a cashless exercise. Possible Constructive Distributions The terms of each Company Warrant provide for an adjustment to the number of Company Shares for which the Company Warrant may be exercised or to the exercise price of the Company Warrant in certain events, as discussed in the section of this proxy statement/prospectus entitled “ Description of the Company’s Securities — Warrants.” An adjustment which has the effect of preventing dilution generally is not taxable. U.S. Holders of Company Warrants would, however, be treated as receiving a constructive distribution from the Company if, for example, the adjustment increases such U.S. Holders’ proportionate interest in the Company’s assets or earnings and profits (e.g., through an increase in the number of Company Shares that would be obtained upon exercise or through a decrease in the exercise price of the Company Warrants), which adjustment may be made as a result of a distribution of cash or other property to the holders of Company Shares. Such constructive distribution to a U.S. Holder of Company Warrants would be treated as if such U.S. Holder had received a cash