Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 56

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 56
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 and focus from management and other employees, which may divert attention
from our commercial activities. In addition to shareholder approval, such redomiciling will require approval by the NASDAQ. As a U.S.
public company, we would no longer be able to take advantage of Canadian rules and would be subject to additional governance and disclosure
requirements, including NASDAQ requirements and the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. If any reincorporation
activities we undertake in the future fail to achieve some or all of the expected benefits therefrom, our business, results of operations
and financial condition could be materially and adversely affected.

Canadian Corporate Tax Risk

For Canadian tax
purposes, on the date of the Arrangement we will be deemed to have a year end and to have disposed of all of our property for proceeds
equal to the fair market value of that property. We will also be subject to an additional corporate emigration tax imposed on the amount,
if any, by which the fair market value of our property, net of certain liabilities, exceeds the paid-up capital of our issued and outstanding
Common Shares.

The quantum of tax
payable, if any, by the Company upon the Arrangement will depend upon a number of considerations including whether the Company reorganizes
and/or winds up one or more of its subsidiaries prior to the Arrangement becoming effective, the valuation of the Company’s assets,
the amount of its liabilities, its shareholder composition, as well as certain Canadian tax amounts, accounts and balances of the Company,
each as of the time of the Arrangement. There could be material adverse tax consequences that result from the Arrangement or the transactions
completed in relation to the Arrangement in Canada. In addition, it is possible that following the Arrangement, the Canada Revenue Agency
may disagree with the Company’s determination of the fair market value of its properties at the relevant time and/or the Company’s
determination of any of its tax accounts or tax attributes. As a result, the quantum of Canadian tax payable by the Company may materially
exceed the Company’s estimates at that time. Any such adverse tax consequences could materially adversely affect the Company and
its share price. For additional information on the Canadian federal income tax consequences of the Arrangement, see the section entitled
“Certain Canadian Federal Income Tax Considerations Related To The Arrangement” of the management information circular
of the Company dated January 31, 2025 and filed on February 4, 2025, prepared