Company: APXIF
Filing Date: 2025-07-18
Form Type: F-4/A
Source: 0001213900-25-065703
Chunk: 343

Company: APx Acquisition Corp. I
Filing Date: 2025-07-18
Form: F-4/A
Chunk 343
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 their particular circumstances. Exercise, Lapse or Redemption of a Company Warrant Subject to the PFIC rules discussed below under “— PFIC Rules”, a U.S. Holder generally will not recognize gain or loss upon the acquisition of a Company Shares on the exercise of a Company Warrant for cash. A U.S. Holder’s tax basis in a Company Shares received upon exercise of the Company Warrant generally will equal the sum of the U.S. Holder’s tax basis in such Company Warrant and the exercise price. It is unclear whether a U.S. Holder’s holding period for the Company Share received will commence on the date of exercise of the Company Warrant or the day following the date of exercise of the Company Warrant; in either case, the holding period will not include the period during which the U.S. Holder held the Company Warrant. If a Company Warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a capital loss equal to such holder’s tax basis in the Company Warrant. 166 The tax consequences of a cashless exercise of a warrant are not clear under current law. Subject to the PFIC rules discussed below under “— PFIC Rules”, a cashless exercise may not be taxable, either because the exercise is not a realization event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either situation, a U.S. Holder’s tax basis in Company Shares received generally should equal the U.S. Holder’s tax basis in the Company Warrants exercised therefor. If the cashless exercise was not a realization event, it is unclear whether a U.S. Holder’s holding period for the Company Shares received would be treated as commencing on the date of exercise of the Company Warrants or the day following the date of exercise of the Company Warrants; in either case, the holding period will not include the period during which the U.S. Holder held the Company Warrants. If the cashless exercise were treated as a recapitalization, the holding period of the Company Shares received would include the holding period of the Company Warrants. It is also possible that a cashless exercise could be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. Holder could be deemed to have surrendered a number of Company Warrants equal to the number of Company Shares having a value equal to the exercise price for the total number of Company Warrants to be exercised. In such case