Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 69

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 69
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 of the Business Combination are uncertain.The Company has not sought any rulings
from the IRS with respect to the statements made and the positions or conclusions described in this summary. The IRS may not agree with our position that we should be treated as a non-U.S. corporation for U.S. federal income tax purposes, and there can be no assurance that, if challenged, such treatment will be sustained by a court. The remainder of this prospectus assumes that PubCo will not be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code.

We may be or become a passive foreign investment company (“PFIC”), which could result in adverse U.S. federal income tax consequences to U.S. Holders of our Ordinary Shares.

In
general, we will be treated as a PFIC for any taxable year in which either (1) at least 75% of our gross income (looking through certain
25% or more-owned subsidiaries) is passive income or (2) at least 50% of the average value of our assets (looking through certain 25%
or more-owned subsidiaries) is attributable to assets that produce, or are held for the production of, passive income. Passive income
generally includes, without limitation, dividends, interest, rents, royalties, and gains from the disposition of passive assets. If we
are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder (as defined
in the Section of this prospectus captioned “Material U.S. Federal Income Tax Considerations”) of our securities, the
U.S. Holder may be subject to increased U.S. federal income tax liability and may be subject to additional reporting requirements. The
determination of whether we are a PFIC is a fact-intensive determination made on an annual basis applying principles and methodologies
that in some circumstances are unclear and subject to varying interpretation. Our actual PFIC status for any taxable year will not be
determinable until after the end of such taxable year. Accordingly, there can be no assurance with respect to our status as a PFIC for
our current taxable year or any subsequent taxable year. We urge U.S. Holders to consult their own tax advisors regarding the possible
application of the PFIC rules in light of their individual circumstances.

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Changes to, or changes in interpretations of, tax laws could have a material adverse effect on our business