Company: APXIF
Filing Date: 2025-01-22
Form Type: F-4
Source: 0001213900-25-005463
Chunk: 330

Company: APx Acquisition Corp. I
Filing Date: 2025-01-22
Form: F-4
Chunk 330
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. The application of such rules will depend upon whether the Redemption qualifies for sale or distribution treatment under the rules discussed above under “ Tax Consequences of Exercising Redemption Rights.” Application of PFIC Rules to the Merger Even if the exchange of Public Shares in the Merger for Company Shares qualifies for the Intended Tax Treatment, a U.S. Holder that transfers APx Securities pursuant to the Merger could nevertheless recognize gain if APx is a PFIC for any taxable year (or portion thereof) that is included in that U.S. Holder’s holding period. Section 1291(f) of the Code requires that, to the extent provided in Treasury Regulations, a U.S. Holder who disposes of stock of a PFIC recognizes gain notwithstanding any other provision of the Code. No final Treasury Regulations are currently in effect under Section 1291(f) of the Code. However, proposed Treasury Regulations under Section 1291(f) of the Code have been promulgated with a retroactive effective date. If finalized in their current form or if the IRS successfully asserts that Section 1291(f) of the Code is self -executingnotwithstanding the absence of final or temporary Treasury Regulations, a U.S. Holder of Public Shares may recognize gain in connection with the Merger if: (i) such U.S. Holder has not made a PFIC Election and (ii) the Company is not a PFIC in the taxable year that includes the day after the Merger. Any such gain generally would be subject to the PFIC rules described below under “ — Company Securities.” It is not possible to predict whether, in what form and with what effective date, final Treasury Regulations under Section 1291(f) of the Code will be adopted and whether the IRS would assert that Section 1291(f) of the Code is self -executingnotwithstanding the absence of final or temporary Treasury Regulations. Therefore, U.S. Holders of Public Shares that have not made a timely PFIC Election may, pursuant to the proposed Treasury Regulations, be subject to taxation under the PFIC rules on the Merger. Moreover, if the exchange of Public Shares in the Merger for Company Shares does not qualify for the Intended Tax Treatment, or if a U.S. Holder recognizes gain on the deemed exchange of Public Warrants for Company Warrants pursuant to the Merger, any gain recognized on such exchange generally would be subject to the PFIC rules described below under “ — Company Securities.” 166 THE RULES DEALING WITH PFICS