Company: MCGAU
Filing Date: 2025-04-16
Form Type: S-1
Source: 0001213900-25-032483
Chunk: 292

Company: Yorkville Acquisition Corp.
Filing Date: 2025-04-16
Form: S-1
Chunk 292
---
 under that section in the same manner as if the U.S. holders of the warrants received a cash distribution from us equal to the fair market value of such increased interest. For certain information reporting purposes, we are required to determine the date and amount of any such constructive distributions. Recently proposed Treasury regulations, which we may rely on prior to the issuance of final regulations, specify how the date and amount of constructive distributions are determined. 189 Passive Foreign Investment Company Rules A non -U.S. corporation will be a PFIC for U.S. federal income tax purposes if at least 75% of its gross income in a taxable year, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income. Alternatively, a non -U.S. corporation will be a PFIC if at least 50% of its assets in a taxable year of the non -U.S. corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any corporation in which it is considered to own at least 25% of the shares by value, are held for the production of, or produce, passive income. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of assets giving rise to passive income. Because we are a blank check company, with no current active operating business, we believe that it is likely that we will meet the PFIC asset or income test for periods prior to the acquisition of a company or assets in a business combination. Pursuant to a start -upexception, however, a corporation will not be a PFIC for the first taxable year the corporation has gross income (the “start -upyear”), if (1) no predecessor of the corporation was a PFIC; (2) the corporation satisfies the IRS that it will not be a PFIC for either of the first two taxable years following the start -upyear; and (3) the corporation is not in fact a PFIC for either of those years. The applicability of the start -upexception to us will not be known until after the close of our current taxable year ending December 31, 2025 and, possibly not until after the close of our two taxable years following our start -upyear (within the meaning of the exception). After the acquisition of a company or assets