Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 154

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 154
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.S. federal income tax principles). Because we may not maintain calculations of earnings and profits under U.S. federal income
tax principles, it is possible that the full amount of distributions paid by us will need to be reported as dividends for U.S. federal
income tax purposes.

Distributions in excess of
such earnings and profits generally will be applied against and reduce the U.S. holder’s basis in its Ordinary Shares (but not below
zero) and, to the extent in excess of such tax basis, will be treated as gain from the sale or exchange of such Ordinary Shares.

Dividends paid by the Company
will be taxable to a corporate U.S. Holder at regular rates and will not be eligible for the dividends-received deduction generally allowed
to domestic corporations in respect of dividends received from other domestic corporations. Dividends the Company pays to a non-corporate
U.S. Holder generally will constitute “qualified dividends” that will be subject to U.S. federal income tax at the lower applicable
long-term capital gains tax rate only if (i) our Ordinary Shares are readily tradable on an established securities market in the United
States, and (ii) a certain holding period and other requirements are met. If such requirements are not satisfied, a non-corporate U.S.
Holder may be subject to tax on the dividend at regular ordinary income tax rates instead of the preferential rate that applies to qualified
dividend income.

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Possible Constructive Distributions

The terms of the
Warrants provide for an adjustment to the number of our Ordinary Shares for which Warrants may be exercised or to the exercise price
of the Warrants in certain events. An adjustment which has the effect of preventing dilution generally is not taxable. U.S. Holders
of Warrants would, however, be treated as receiving a constructive distribution from the Company if, for example, the adjustment
increases the warrant holders’ proportionate interest in the Company’s assets or earnings and profits (e.g., through an
increase in the number of our Ordinary Shares that would be obtained upon exercise or through a decrease in the exercise price of
the Warrants) as a result of a distribution of cash or other property to the U.S. Holders of shares of our Ordinary Shares. Any such
constructive distribution would be treated in the same manner as if U.S. Holders of Warrants received a cash distribution from the
Company generally equal to the fair market value of the