Company: APXIF
Filing Date: 2025-01-22
Form Type: F-4
Source: 0001213900-25-005463
Chunk: 318

Company: APx Acquisition Corp. I
Filing Date: 2025-01-22
Form: F-4
Chunk 318
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) that has in effect a valid election under applicable Treasury Regulations to be treated as a U.S. person. Tax Consequences of Exercising Redemption Rights If you are a U.S. Holder and elect to redeem some or all of your Public Shares pursuant to the redemption provisions described in this proxy statement/prospectus (a “Redemption”), subject to the discussion below of the rules applicable to a PFIC, the treatment of the transaction for U.S. federal income tax purposes generally will depend on whether the Redemption qualifies as a sale of the Public Shares under Section 302 of the Code that is taxable as described below under the heading “ — Taxation of Sale or Exchange,” or rather as a distribution that is taxable as described below under the heading “ — Taxation of Distributions.” Generally, whether the Redemption qualifies for sale or distribution treatment will depend largely on the total number of shares of APx held or treated as held by the U.S. Holder immediately after the Redemption (including any shares constructively owned by the U.S. Holder as a result of owning Public Warrants and taking into account any ownership in Company Shares and/or Company Warrants immediately after the Business Combination) relative to the total number of shares of APx held or treated as held by the U.S. Holder immediately before such Redemption. A Redemption generally will be treated as a sale of Public Shares (rather than as a distribution) if the Redemption (i) is “substantially disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s interest in APx or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder. In determining whether any of the foregoing tests are satisfied, a U.S. Holder generally takes into account not only stock actually owned by the U.S. Holder, but also shares of APx that are constructively owned by it. A U.S. Holder may constructively own, in addition to stock owned directly, stock owned by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such U.S. Holder, as well as any stock the U.S. Holder 160 has a right to acquire by exercise of an option, which would generally include Public Shares which could be acquired pursuant to the exercise of any Public Warrants held by it (and, after the completion of the Business Combination, Company Shares which could be acquired by exercise of Company Warrants). In order to