In rendering such opinion, we have assumed, with your permission, that (i) the Mergers will be effected in accordance with the Agreement, (ii) the statements concerning the Mergers set forth in the Agreement and the Registration Statement are true, complete and correct and will remain true, complete and correct at all times up to and including each of the Initial Merger Effective Time, the Second Merger Effective Time and the Third Merger Effective Time, (iii) the representations made by PCAC, LGHL and Merger Sub 1 in the Representation Letter are true, complete and correct and will remain true, complete and correct at all times up to and including each of the Initial Merger Effective Time, the Second Merger Effective Time and the Third Merger Effective Time, (iv) any representations made in the Agreement and the Representation Letter “to the knowledge of”, or based on the belief of PCAC, LGHL and Merger Sub 1, or similarly qualified are true, complete and correct and will remain true, complete and correct at all times up to and including each of the Initial Merger Effective Time, the Second Merger Effective Time and the Third Merger Effective Time, in each case without such qualification and (v) every U.S. holder (as defined under the caption “Certain Tax Considerations – Certain United States Federal Income Tax Considerations” in the Registration Statement) who is a “five-percent transferee shareholder”, as defined in Treasury regulations promulgated under Section 367(a) of the Code (the “Section 367 Regulations”), with respect to LGHL, if any, will file a timely and effective “gain recognition agreement”, as defined in the Section 367 Regulations, if applicable. We have also assumed that the parties have complied with and, if applicable, will continue to comply with, the covenants contained in the Agreement at all times up to and including the Third Merger Effective Time.
Based upon the foregoing, and subject to the assumptions, qualifications and limitations stated herein and therein, we confirm that the statements under the caption “Certain Tax Considerations – Certain United States Federal Income Tax Considerations” in the Registration Statement, insofar as they discuss matters of U.S. federal income tax law and regulations or legal conclusions with respect thereto, constitute our opinion as to the material United States federal income tax consequences of (i) the Business Combination to U.S. holders (as defined under the caption “Certain Tax Considerations – Certain United States Federal Income Tax Considerations” in the Registration Statement) of PCAC Ordinary Shares (excluding any redeemed shares) and PCAC Warrants, (ii) the subsequent ownership and disposition of LGHL Ordinary Shares and LGHL Warrants received in the Agreement by U.S. holders of PCAC Ordinary Shares and PCAC Warrants and (iii) the exercise of redemption rights by PCAC shareholders that are U.S. holders.