Company: KII
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119587
Chunk: 276

Company: K2 Capital Acquisition Corp
Filing Date: 2025-12-09
Form: S-1/A
Chunk 276
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 tax basis in the relevant Class A ordinary shares or rights. A U.S. Holder’s adjusted tax basis in its Class A ordinary shares or rights generally will equal the U.S. Holder’s acquisition cost (that is, as discussed above, the portion of the purchase price of a unit allocated to a Class A ordinary share or a right, as the case may be) less, in the case of our Class A ordinary shares, any prior distributions treated as a return of capital, as discussed above. Any such capital gain or loss generally will be long -termcapital gain or loss if the U.S. Holder’s holding period for the Class A ordinary shares or rights, as applicable, so disposed of exceeds one year. It is unclear, however, whether the redemption rights with respect to the Class A ordinary shares described in this prospectus may be deemed to be a limitation of a shareholder’s risk of loss and suspend the running of the applicable holding period of such shares for this purpose during the period in which the U.S. Holder has redemption rights with respect to the Class A ordinary shares (i.e., the period prior to the consummation of our initial business combination). If the one -yearholding period is not satisfied, any gain on a sale or other taxable disposition of the Class A ordinary shares or rights, as applicable, would be subject to short -termcapital gain treatment and would be taxed at regular ordinary income tax rates. Long -termcapital gains recognized by non -corporateU.S. Holders may be eligible to be taxed at reduced rates. The deductibility of capital losses is subject to limitations. Redemption or Repurchase of Class A Ordinary Shares for Cash Subject to the PFIC rules discussed below, in the event that a U.S. Holder’s Class A ordinary shares are redeemed pursuant to the redemption provisions described in this prospectus under the section entitled “Description of Securities — Ordinary Shares” or if we repurchase a U.S. Holder’s Class A ordinary shares in an open market transaction (generally referred to herein as a “redemption”), the treatment of the redemption for U.S. federal income tax purposes will depend on whether it qualifies as a sale of the Class A ordinary shares under Section 302 of the Code. If the redemption qualifies as a sale of Class A ordinary shares, the U.S. Holder will be treated as described under “— Considerations for U.S. Holders — Gain or Loss on Sale or Other Taxable Exchange or Disposition of Class A Ordinary Shares” above. If the redemption does not