Company: LIMN
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001104659-25-010605
Chunk: 286

Company: Liminatus Pharma, Inc.
Filing Date: 2025-02-07
Form: 424B3
Chunk 286
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 value of the ParentCo Common Stock and ParentCo warrants received over such stockholder’s aggregate tax basis in our common stock and Public Warrants exchanged therefor), and (ii) the fair market value of the ParentCo warrants received. Any such gain would generally be long-term capital gain if the holder’s holding period for our common stock and Public Warrants (or just Public Warrants as the case may be) was more than one year at the time of the SPAC Merger, and the holder’s holding period in the ParentCo warrants would begin on the day following the exchange. In that case, the holder’s tax basis in the ParentCo warrants received in the exchange would be equal to the fair market value of such ParentCo warrants at the time of the SPAC Merger.

Taxation of Distributions . If our redemption of a U.S. holder’s shares of our common stock is treated as a distribution, as discussed above under the section entitled “ Redemption of Our Common Stock ,” and in the event of any future distributions with respect to ParentCo Common Stock (or deemed distributions), such distributions generally will constitute a dividend for U.S. federal income tax purposes to the extent paid from our (or ParentCo’s, as the case may be) current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. holder’s adjusted tax basis in our common stock or ParentCo Common Stock, as applicable. Any remaining excess will be treated as gain realized on the sale or other disposition of our common stock or ParentCo Common Stock, as applicable, and will be treated as described below under the section entitled “ U.S. Holders — Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock or Warrants .”

Dividends paid to a U.S. holder that is a taxable corporation generally will qualify for the dividends received deduction if the requisite holding period is satisfied. With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment interest deduction limitations), and provided certain holding period requirements are met, dividends paid to a non-corporate U.S. holder generally will constitute “qualified dividends” that will be subject to tax at the maximum tax rate accorded to long-term capital gains. It is unclear whether the redemption rights with respect to our common stock described in this proxy