Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 38

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 38
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 of their respective affiliates will only purchase shares if such purchases comply with Regulation M under the Exchange Act and the other federal securities laws.

Any purchases by the Sponsor or AlphaTime’s officers, directors, advisors or any of their respective affiliates who are affiliated purchasers under Rule 10b-18 under the Exchange Act will only be made to the extent such purchases are able to be made in compliance with Rule 10b-18, which is a safe harbor from liability for manipulation under Section 9(a)(2) of and Rule 10b-5 under the Exchange Act. Rule 10b-18 has certain technical requirements that must be complied with in order for the safe harbor to be available to the purchaser. The Sponsor and AlphaTime’s officers, directors, advisors and any of their respective affiliates will not make purchases of AlphaTime Share if the purchases would violate Section 9(a)(2) of or Rule 10b-5 under the Exchange Act.

Q: How will the effective rate of underwriting discounts and commissions paid on capital raised in AlphaTime’s initial public offering and retained after the Business Combination be affected by redemptions?

A: AlphaTime sold 6,900,000 Public Units in its initial public offering, with investors paying $10.00 per Public Unit, representing gross initial public offering proceeds of $69.0 million. The underwriters in the initial public offering received $1.5 million upon completion of the initial public offering and will receive an additional $2.415 million upon consummation of the Business Combination, resulting in a 6.00% rate of underwriting discounts and commissions, which represents the underwriters’ total underwriting discounts and commissions as a percentage of gross initial public offering proceeds. However, to the extent there are redemptions, thereby reducing the remaining amount of initial public offering proceeds available at the Closing, the effective rate of underwriting discounts and commissions paid by AlphaTime and borne indirectly by its non-redeeming shareholders will be higher after taking into account the proceeds used to redeem the shares of redeeming shareholders. For example, assuming the 50% Redemption Scenario where AlphaTime public shareholders would redeem 872,225 ATMC Ordinary Shares, the effective rate of the deferred underwriting discounts and commissions paid by AlphaTime will increase to 37.1%.

Q: What are the U.S. federal income tax consequences of exercising my redemption rights?

A: The receipt of cash by a U.S. holder of ATMC Ordinary Shares in redemption of such shares will be a taxable