Company: NMP
Filing Date: 2025-06-12
Form Type: S-1/A
Source: 0001213900-25-053533
Chunk: 121

Company: NMP Acquisition Corp.
Filing Date: 2025-06-12
Form: S-1/A
Chunk 121
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 during the same taxable year. The U.S. Department of the Treasury and IRS have released preliminary guidance that would potentially cause a non -U.S. corporation’s U.S. subsidiaries to be subject to the stock buyback tax with respect to any share repurchases made by the non -U.S. corporation under certain circumstances. As an entity incorporated as a Cayman Islands exempted company, the stock buyback tax is not expected to apply to redemptions of our Class A ordinary shares, including redemptions related to extension votes, if any, a business combination in which we remain a Cayman Islands exempted company or otherwise (absent any regulations and other additional guidance that may be issued in the future with retroactive effect). Even in the event such a tax was to be imposed, the proceeds placed in the trust account and the interest earned thereon will not be used to pay for possible excise tax. 77 However, in connection with an initial business combination involving a company organized under the laws of the United States, it is possible that we domesticate and continue as a Delaware corporation prior to certain redemptions and, because our securities are trading on Nasdaq, it is possible that we will be subject to the stock buyback tax with respect to any subsequent redemptions, including redemptions related to extension votes, if any, or in connection with the initial business combination, that are treated as repurchases for this purpose (other than, pursuant to recently issued guidance from the U.S. Department of the Treasury, redemptions in complete liquidation of the company). In all cases, the extent of the stock buyback tax that may be incurred will depend on a number of factors, including the fair market value of our stock redeemed, the extent such redemptions could be treated as dividends and not repurchases, and the content of any regulations and other additional guidance from the U.S. Department of the Treasury that may be issued and applicable to the redemptions. Issuances of stock by a repurchasing corporation in a year in which such corporation repurchases stock may reduce the amount of excise tax imposed with respect to such repurchase. The excise tax is imposed on the repurchasing corporation itself, not the shareholders from which stock is repurchased. The imposition of the excise tax as a result of redemptions in connection with the initial business combination could, however, reduce the amount of cash available to pay redemptions or reduce the cash contribution to the target business in connection with our