Company: SPEG
Filing Date: 2025-06-26
Form Type: S-1/A
Source: 0001213900-25-058468
Chunk: 309

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-06-26
Form: S-1/A
Chunk 309
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 of our shares (by vote or value) may be subject to special reporting requirements with respect to a redemption of Class A ordinary shares, and such holders are urged to consult with their own tax advisors with respect to their reporting requirements. Acquisition of Class A Ordinary Shares Pursuant to Public Rights The treatment of the public rights to acquire Class A ordinary shares is uncertain. The public right may be viewed as a forward contract, derivative security or similar interest in our company (analogous to an option with no exercise price), and thus the holder of the public right would not be viewed as owning the Class A ordinary shares issuable pursuant to the public rights until such Class A ordinary shares are actually issued. There may be other alternative characterizations of the public rights that the IRS may successfully assert, including that the public rights are treated as equity in our company at the time the public rights are issued. The tax consequences of an acquisition of our Class A ordinary shares pursuant to public rights are unclear and will depend on the treatment of any initial business combination. Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of an acquisition of Class A ordinary shares pursuant to public rights and the consequences of any initial business combination. TAX GROUP TO ADD LANGUAGE TO ADDRESS PRIVATE PLACEMENT WARRANTS Passive Foreign Investment Company Rules A foreign (i.e., non -U.S.) corporation will be classified as a PFIC for United States federal income tax purposes if either (i) 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 or (ii) at least 50% of its assets in a taxable year (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, among other things, 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 business, we believe that it is likely that we will meet the PFIC asset or income test for our current taxable year. However, pursuant to a startup exception, a corporation will not be