Company: CRAC
Filing Date: 2025-07-11
Form Type: S-1/A
Source: 0001213900-25-062977
Chunk: 278

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-07-11
Form: S-1/A
Chunk 278
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 below zero) and, to the extent in excess of such basis, will be treated as gain from the sale or exchange of such Class A ordinary shares (see “— Taxation on the Disposition of Class A Ordinary Shares and Share Rights” below). With respect to non -corporateU.S. Holders, under the tax laws currently in effect, dividends generally will be taxed at the lower applicable long -termcapital gains rate (see “— Taxation on the Disposition of Class A Ordinary Shares and Share Rights” below) only if our Class A ordinary shares are readily tradable on an established securities market in the United States, we are not a PFIC at the time the dividend was paid or in the previous taxable year and certain other requirements are met. U.S. Holders should consult their tax advisors regarding the availability of the lower rate for any dividends paid with respect to our Class A ordinary shares. Possible Constructive Distributions The terms of each Share Right provide for an adjustment to the number of Class A ordinary shares for which the Share Right may be exercised or to the exercise price of the Share Right in certain events, as discussed in the section of this prospectus captioned “Description of Securities — Share Rights.” An adjustment which has the effect of preventing dilution generally is not taxable. The U.S. Holders of the Share Rights would, however, be treated as receiving a constructive distribution from us if, for example, the adjustment increases such U.S. Holders’ proportionate interest in our assets or earnings and profits (e.g., through an increase in the number of Class A ordinary shares that would be obtained upon exercise or through a decrease to the exercise price, including, for example, the decrease to the exercise price of the Share Rights where additional Class A ordinary shares or equity -linkedsecurities are issued in connection with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per ordinary share, as described under “Description of Securities — Share Rights”) as a result of a distribution of cash or other property to the holders of our Class A ordinary shares which is taxable to the U.S. Holders of such Class A ordinary shares as described under “— Taxation of Distributions” above. Such constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. Holders of the Share Rights received a cash distribution from us equal to the fair market value of such increased interest. For certain information reporting purposes, we