Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 149

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 149
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 U.S. Federal Income Tax Considerations - Consequences of the Business Combination,” AlphaTime intends to treat the Initial Mergers as a “reorganization” within the meaning of Section 368 of the Code. If this treatment applies, a U.S. Holder (as defined in “ The Business Combination Proposal - Background of the Business Combination - Material Tax Considerations - Material U.S. Federal Income Tax Considerations”) of ATMC Ordinary Shares and ATMC Warrants will not recognize gain or loss on the exchange of the shares and warrants for PubCo Ordinary Shares and PubCo Warrants pursuant to the Business Combination. While it is not entirely clear, AlphaTime intends to take the position (to the extent required to do so) that U.S. Holders of Public Rights that exchange the underlying ATMC Ordinary Shares pursuant to the Business Combination would be treated in the same manner. However, there can be no assurance that the IRS will not assert that the Initial Mergers (or either of the First SPAC Merger or the Second SPAC Merger) do not qualify as a reorganization within the meaning of Section 368 of the Code, or otherwise as a tax-free transaction. In that case, a U.S. Holder that exchanges its ATMC Ordinary Shares (including shares received upon the conversion of Public Rights) and ATMC Warrants for PubCo Ordinary Shares and PubCo Warrants pursuant to the Business Combination will be required to recognize gain or loss equal to the difference between (i) the sum of the fair market value of the PubCo Ordinary Shares and PubCo Warrants received and (ii) the U.S. Holder’s adjusted tax basis in the ATMC Ordinary Shares and ATMC Warrants exchanged. In addition, unless the Initial Mergers qualify as an “F reorganization” it is possible that the passive foreign investment company (“ PFIC”) rules, further described below, could apply to the transfer of the ATMC Ordinary Shares, ATMC Warrants or Public Rights pursuant to the Initial Mergers, depending on PubCo’s PFIC status. U.S. Holders of ATMC Ordinary Shares, ATMC Warrants or Public Rights should consult their tax advisers regarding the U.S. federal income tax consequences of the Initial Mergers, including in the event that they do not qualify for a tax-free treatment.

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If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may