Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 134

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 134
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 would be used for such repayment. We will depend on sufficient interest being earned on the proceeds held in the trust account to pay any tax obligations we may owe.

However, we may not properly assess all claims that may be potentially brought against us. As a result, our shareholders could potentially be liable for any claims to the extent of distributions received by them (but no more) and any liability of our shareholders may extend well beyond the third anniversary of the date of distribution. Accordingly, third parties may seek to recover from our shareholders amounts owed to them by us.

If, after we distribute the proceeds in the Trust Account to our public shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, any distributions received by shareholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy court could seek to recover all amounts received by our shareholders. In addition, our Board may be viewed as having breached its fiduciary duty to our creditors and/or having acted in bad faith, thereby exposing itself and us to claims of punitive damages, by paying public shareholders from the trust account prior to addressing the claims of creditors.

If AlphaTime’s due diligence investigation of HCYC was inadequate, then shareholders of AlphaTime following the Business Combination could lose some or all of their investment.

Even though AlphaTime conducted a due diligence investigation of HCYC, it cannot be sure that this diligence uncovered all material issues that may be present inside HCYC or its business, or that it would be possible to uncover all material issues through a customary amount of due diligence, or that factors outside of HCYC and its business and outside of its control will not later arise.

Shareholder litigation and regulatory inquiries and investigations are expensive and could harm AlphaTime’s business, financial condition and operating results and could divert management attention.

In the past, securities class action litigation and/or shareholder derivative litigation and inquiries or investigations by regulatory authorities have often followed certain significant business transactions, such as the sale of a company or announcement of any other strategic transaction, such as the Business Combination. Any shareholder litigation and/or regulatory investigations against AlphaTime, whether or not resolved in AlphaTime’s favor, could result in substantial costs and divert AlphaTime’s management’s attention from other business concerns, which could adversely affect AlphaTime’s business and cash resources and the ultimate value AlphaTime Shareholders receive as a result of the Business Combination.

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