Company: GDSTR
Filing Date: 2025-01-30
Form Type: S-4
Source: 0001213900-25-008051
Chunk: 165

Company: Goldenstone Acquisition Ltd.
Filing Date: 2025-01-30
Form: S-4
Chunk 165
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 resident, subject to an applicable income tax treaty providing otherwise. A Non -U.S. corporation receiving effectively connected dividends may also be subject to an additional “branch profits tax” imposed at a rate of 30% (or a lower treaty rate). U.S. Federal Income Tax Consequences of the Business Combination to U.S. Holders of Infintium Shares The following is a discussion of the tax consequences of the Business Combination to an owner of Infintium shares who is a U.S. Holder. Shares received on the closing of the merger Infintium will receive an opinion of tax counsel that, for U.S. federal income tax purposes, the merger will qualify as a “reorganization” within the meaning of Code Section 368(a). If the merger does qualify as a reorganization then, except as discussed below with respect to the “Earn Out shares”, the consequences of the merger exchange to U.S. Holders are as follows: A U.S. Holder will not recognize gain or loss on the exchange of his Infintium shares for New Infintium Common Stock. The U.S. Holder’s aggregate adjusted tax basis in his shares of New Infintium Common Stock received as a result of the merger will be the same as his aggregate adjusted tax basis in the Infintium shares surrendered in the exchange as of the date of the merger. The U.S. Holder’s holding period in his shares of New Infintium Common Stock received in the exchange will include the period during which he held the Infintium shares surrendered in the exchange. U.S. Holders of compensatory options should consult with their own tax advisors about the tax consequences to them of exchanging their options for options in New Infintium. Earn Out shares Generally, the tax consequences of the receipt of Earn Out shares will be the same as those described above under “Shares received on the closing of the merger.” However, a portion of each Earn Out share will be treated as imputed interest and taxable as interest. Since Earn Out shares will not be delivered (if at all) until significantly after the closing of the merger, the merger is treated as a deferred payment sales contract subject to Code Section 483. Under Code Section 483, when a deferred payment sales contract does not provide for interest, a portion of the deferred 85 payments are treated as interest income rather than as part of the stock consideration. The amount of interest imputed to an Earn Out payment will be determined by the total value of the payment, the time that elapses before the payment