Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 201

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 201
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 as a Reorganization

The Initial Mergers should be treated as a “reorganization” described in Section 368(a)(1)(F) of the Code (an “ F Reorganization”). However, there is no assurance that the IRS or any court will agree with this position. U.S. Holders should be aware that the completion of the Business Combination is not conditioned on the receipt of an opinion of counsel that the Initial Mergers (or any other aspect of the Business Combination) qualify as tax-free transactions. Neither AlphaTime nor PubCo has requested or will request a ruling from the IRS with respect to any aspect of the U.S. federal income tax treatment of the Business Combination.

Assuming that the Initial Mergers qualify as an F Reorganization:

| ● | a                                                                                                                                        
 U.S. Holder that exchanges its ATMC Securities pursuant to the Initial Mergers generally will not recognize gain or loss on the exchange 
 of such ATMC Securities for PubCo Securities,                                                                                            |
| ● | the                                                                                                                                      
 adjusted tax basis of a U.S. Holder in PubCo Ordinary Shares received as a result of the Initial Mergers will equal the adjusted         
 tax basis of the ATMC Ordinary Shares surrendered in exchange therefor,                                                                  |
| ● | the                                                                                                                                      
 adjusted tax basis of a U.S. Holder in the PubCo Warrants received as a result of the Initial Mergers will equal the adjusted tax        
 basis of the Public Warrants surrendered in exchange therefor, and                                                                       |
| ● | a                                                                                                                                        
 U.S. Holder’s holding period in PubCo Securities received in the exchange will include the holding period in the ATMC Securities         
 Shares surrendered in exchange therefor. However, it is unclear whether the redemption rights with respect to the ATMC Ordinary Shares   
 may prevent the holding period of the PubCo Ordinary Shares from commencing prior to the termination of such rights.                     |

The exchange of Public Rights for ATMC Ordinary Shares, which in turn are exchanged for PubCo Ordinary Shares, should also be a tax-free transaction to U.S. Holders of Public Rights, but it is possible that the IRS could take the position that such transactions are taxable to holders of Public Rights, even if the Initial Mergers qualify as an F Reorganization with respect to U.S. Holders of ATMC Ordinary Shares.

If the Initial Mergers do not qualify as an F Reorganization, the tax consequences of the Initial Mergers will depend on whether the Initial Mergers or any component thereof would