Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 157

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 157
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would recognize capital gain or loss in an amount generally equal to the difference between the value of the portion of the warrants deemed
sold and its adjusted tax basis in such warrants (generally in the manner described in the section entitled “Gain or Loss on Sale
or Other Taxable Exchange or Disposition of our Ordinary Shares and Warrants” above), and the U.S. Holder’s tax basis in our
Ordinary Shares received would generally equal the sum of the U.S. Holder’s tax basis in the remaining Warrants deemed exercised
and the exercise price of such warrants. It is unclear whether a U.S. Holder’s holding period for our Ordinary Shares would commence
on the date of exercise of the Warrants or on the date following the date of exercise of the Warrants, but the holding period would not
include the period during which the U.S. Holder held the Warrants.

Due to the absence of authority
on the U.S. federal income tax treatment of a cashless exercise, there can be no assurance which, if any, of the alternative tax characterizations
and resultant tax consequences would be adopted by the IRS or upheld by a court of law. Accordingly, U.S. Holders should consult with
their own tax advisors regarding the tax consequences of a cashless exercise.

Redemption or Repurchase of Warrants for Cash

If the Company redeems the
Warrants for cash as permitted under the terms of the warrant agreement or if the Company repurchases Warrants in an open market transaction,
such redemption or repurchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as described in the section
entitled “Gain or Loss on Sale or Other Taxable Exchange or Disposition of our Ordinary Shares and Warrants” above.

Information Reporting and Backup Withholding

Certain U.S. Holders are
required to report information to the Internal Revenue Service relating to an interest in “specified foreign financial assets,”
including shares issued by a non-United States corporation, for any year in which the aggregate value of all specified foreign financial
assets exceeds $50,000 (or a higher dollar amount prescribed by the Internal Revenue Service), subject to certain exceptions (including
an exception for shares held in custodial accounts maintained with a U.S. financial institution). These rules also impose penalties if
a U.S. Holder is required to submit such information to the Internal Revenue Service and fails to do so.

In addition, dividend payments
with respect to our Ordinary Shares and proceeds from the sale,