Company: APXIF
Filing Date: 2025-06-13
Form Type: F-4/A
Source: 0001213900-25-054324
Chunk: 332

Company: APx Acquisition Corp. I
Filing Date: 2025-06-13
Form: F-4/A
Chunk 332
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 pursuant to the exercise of any Public Warrants held by it (and, after the completion of the Business Combination, Company Shares which could be acquired by exercise of Company Warrants). In order to meet the substantially disproportionate test, the percentage of outstanding voting stock of APx (including the Company Shares received in exchange therefor) actually and constructively owned by the U.S. Holder immediately following the Redemption must, among other requirements, be less than 80% of such voting stock actually and constructively owned by the U.S. Holder immediately before the Redemption. Because, prior to the Merger, the Public Shares may not be considered voting stock, it is unclear whether this test could be satisfied by a U.S. Holder. There will be a complete termination of a U.S. Holder’s interest if either (i) all of the shares of APx actually and constructively owned by the U.S. Holder are redeemed or (ii) all of the Public Shares actually owned by the U.S. Holder are redeemed, and the U.S. Holder is eligible to waive, and effectively waives in accordance with specific rules, the attribution of stock owned by certain family members, the U.S. Holder does not constructively own any other stock and certain other requirements are met. A Redemption will not be essentially equivalent to a dividend if such Redemption results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in APx. Whether the Redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in APx will depend on the particular facts and circumstances. The IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority stockholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a “meaningful reduction.” If none of the foregoing tests are satisfied, then the Redemption will be treated as a distribution and the tax effects will be as described below under “ — Taxation of Distributions.” U.S. Holders of Public Shares considering exercising their Redemption Rights are urged to consult their tax advisors to determine whether the Redemption would be treated as a sale or as a distribution under the Code. Taxation of Sale or Exchange Subject to the PFIC rules discussed below under “— PFIC Rules”, if a Redemption qualifies as a sale of Public Shares (rather than a distribution with respect to such Public Shares), a U.S. Holder generally will recognize gain or loss in an amount equal to the difference between (i) the cash received in the