Company: ALCE
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-007054
Chunk: 194

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 194
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 this offering, a holder of shares of our common stock and accompanying Warrants, or Pre-Funded Warrants and accompanying Warrants, as applicable, must allocate such holder’s purchase price between each share of common stock or Pre-Funded Warrant, as applicable, and the accompanying Warrants based on their respective relative fair market values at the time of issuance. This allocation of the purchase price will establish the holder’s initial tax basis for U.S. federal income tax purposes for each share of common stock or Pre-Funded Warrant, as applicable, and accompanying Warrants. A holder’s allocation of the purchase price among the shares of common stock or Pre-Funded Warrants, as applicable, and accompanying Warrants is not binding on the IRS or the courts, and no assurance can be given that the IRS or the courts will agree with a holder’s allocation. Each holder should consult such holder’s own tax advisor regarding the allocation of the purchase price among the shares of common stock or Pre-Funded Warrants, as applicable, and accompanying Warrants. Treatment of Pre-Funded Warrants Although the matter is not entirely free from doubt, a Pre-Funded Warrant generally should be treated as a share of our common stock for U.S. federal income tax purposes and a holder of Pre-Funded Warrants generally should be taxed in the same manner as a holder of common stock, as described below. Accordingly, no gain or loss should be recognized upon the exercise of a Pre-Funded Warrant and, upon exercise, the holding period of the share of common stock acquired upon exercise of a Pre-Funded Warrant should include the holding period of such Pre-Funded Warrant. Similarly, the tax basis of the share of common stock acquired upon exercise of a Pre-Funded Warrant should equal the tax basis of such Pre-Funded Warrant, increased by the exercise price of $[●]. Each holder should consult his, her or its own tax advisor regarding the U.S. federal, state and local, and non-U.S tax consequences arising from and relating to the purchase, ownership and disposition of Pre-Funded Warrants pursuant to this offering (including potential alternative characterizations). The balance of this summary generally assumes that the characterization described above is respected for U.S. federal income tax purposes. 127 Tax Consequences for U.S. Holders Taxation of Distributions If we pay distributions to U.S. Holders of shares of common stock, Pre-Funded Warrants or Warrants (subject to the remainder of the discussion under this section