Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 211

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 211
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 and, solely for purposes of the PFIC rules, a new holding period in such holder’s PubCo Ordinary Shares. In the absence of a purging election, such U.S. Holder would be treated for purposes of the PFIC rules as if it held such PubCo Ordinary Shares for a period that includes its holding period for the ATMC Ordinary Shares exchanged therefor. U.S. Holders are urged to consult their tax advisors regarding the application of the purging elections rules to their particular circumstances.

In addition, any income or gain recognized by a U.S. Holder electing to have its ATMC Ordinary Shares redeemed, as described above under the heading “ - Consequences of a Redemption of ATMC Ordinary Shares,” would generally be subject to a special tax and interest charge if such U.S. Holder did not make a qualified electing fund (“ QEF”) election for AlphaTime’s first taxable year as a PFIC in which such U.S. Holder held (or was deemed to hold) such shares, a QEF election along with an applicable purging election, or a mark-to-market election (collectively, the “ PFIC Elections”).

If PubCo is a PFIC for any taxable year during which a U.S. Holder owns PubCo Ordinary Shares and any entity in which it owns equity interests is also a PFIC (a “ Lower-tier PFIC”), the U.S. Holder will be deemed to own their proportionate amount (by value) of the shares of each Lower-tier PFIC and will be subject to U.S. federal income tax according to the rules described above on (i) certain distributions by a Lower-tier PFIC and (ii) dispositions of shares of Lower-tier PFICs, in each case as if the U.S. Holders held such shares directly, even though the U.S. Holders will not receive any proceeds of those distributions or dispositions.

If AlphaTime or PubCo is a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of PubCo Ordinary Shares, gain recognized by the U.S. Holder on a sale or other disposition (including certain pledges) of its PubCo Ordinary Shares will be allocated ratably over the U.S. Holder’s holding period for such PubCo Ordinary Shares. The amounts allocated to the taxable year of the sale or disposition and to any year before PubCo became a PFIC will be taxed as ordinary income. The amount allocated to each other taxable year will be subject to