Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 203

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 203
---
U.S. Holder” means a U.S. Holder of HCYC Shares. HCYC does not have any U.S. Holders. Given that HCYC is a non-U.S. entity with no U.S. Holders, in the opinion of VCL Law LLP, there should not be any material U.S. federal income tax consequences of the Business Combination to the pre-Business Combination shareholders of HCYC.

Effect of the Business Combination on HCYC

HCYC is a Cayman Islands exempted company with no U.S. Holders and generally is not subject to U.S. federal income tax. The Initial Mergers will not involve HCYC, and the Acquisition Merger will occur only between non-U.S. entities. As such, HCYC should not recognize gain or loss as a result of the Business Combination.

Consequences of Ownership and Disposition of PubCo Securities

Taxation of Distributions

The following discussion is subject to the discussion below under “ - Passive Foreign Investment Company Rules.”

A U.S. Holder generally will be required to include in gross income as dividend income the amount of any distribution paid on PubCo Ordinary Shares to the extent the distribution is paid out of PubCo’s current or accumulated earnings and profits (as determined under U.S. federal income tax principles) on the day actually or constructively received by the U.S. Holder. Because PubCo may not maintain calculations of earnings and profits under U.S. federal income tax principles, it is expected that the full amount of distributions (if any) paid by PubCo will be reported as dividends for U.S. federal income tax purposes.

Dividends received on PubCo Ordinary Shares will not be eligible for the dividends received deduction generally allowed to corporations. Dividends received by certain other non-corporate U.S. Holders of PubCo Ordinary Shares may be subject to tax at the lower capital gain tax rate currently applicable to “qualified dividend income,” provided that certain conditions are satisfied, including that PubCo is not a PFIC for the taxable year in which the dividend is paid or the preceding year and certain holding period and other requirements are met. It is unclear whether the redemption rights with respect to the ATMC Ordinary Shares may prevent the holding period from commencing prior to the termination of such rights. U.S. Holders should consult their tax advisers regarding the availability of such lower rate on dividends generally and in their particular circumstances.

Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of