Company: PMVC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107610
Chunk: 306

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part II, Item 1
Chunk 306
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 regulated as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must
ensure that we are engaged primarily in a business other than investing, reinvesting or trading in securities for purposes of Section
(3)(a)(1)(A) thereof and that our activities do not include investing, reinvesting, owning, holding or trading “investment securities”
constituting more than 40% of our total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis for
purposes of Section (3)(a)(1)(C) thereof. Our business is to identify a potential business opportunity and complete a transaction.

We
do not believe that our principal ongoing activities centered on identifying a potential business opportunity and completing a transaction
will subject us to the Investment Company Act under the definition of “investment company” contained in Section (3)(a)(1)(A)
thereof. By having a business plan targeted at identifying a potential business opportunity and completing a transaction, we intend to
avoid being deemed an “investment company” within the meaning of the Investment Company Act.

However,
we are aware of litigation against certain entities asserting that, notwithstanding the foregoing, those entities should be considered
investment companies and the SEC has suggested that the extended period of investment of assets by similar such entities raise questions
about their status as investment companies under Section 3(a)(1)(A) of the Investment Company Act.

A
new 1% U.S. federal excise tax could be imposed on the Company in connection with redemptions.

On
August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into federal law. The IRA provides for, among
other things, a new U.S. federal 1% excise tax on certain repurchases (including redemptions as defined in the Internal Revenue Code)
of stock by publicly traded U.S. corporations and certain U.S. subsidiaries of publicly traded non-U.S. corporations (each, a “covered
corporation”). Because our securities are publicly trading in the over-the-counter market, we may be deemed a “covered corporation”
for this purpose. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased.
The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However,
for purposes