Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 253

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 253
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 we continue to meet
the tests described above.

Based on the book value of our assets and liabilities and our Market Capitalization
in 2024, we believe that we did not meet the PFIC asset test described above for 2024 and, as a result, we were not classified as a PFIC
in 2024. Because we currently hold, and expect to continue to hold, a substantial amount of cash and cash equivalents and other passive
assets used in our business, there is substantial risk we will be classified as a PFIC for the 2025 taxable year. However, because PFIC
status is based on our income, assets and activities for the entire taxable year, and our Market Capitalization, it is not possible to
determine whether we will be characterized as a PFIC for the 2025 taxable year until after the close of the year. Moreover, we must determine
our PFIC status annually after the close of each taxable year based on tests which are factual in nature, and our status in future years
will depend on our income, assets, activities and Market Capitalization in those years. Thus, there can be no assurance that we will not
be considered a PFIC for the current taxable year or any future taxable year.

If we are a PFIC for any taxable year during which a U. S. Holder
owns ordinary shares, we will generally continue to be treated as a PFIC with respect to such U. S. Holder for all succeeding years during
which such U. S. Holder owns such ordinary shares, unless we cease to be a PFIC and the U. S. Holder makes a “deemed sale” election
with respect to such ordinary shares. If such election is made, the U. S. Holder will be deemed to have sold the ordinary shares it holds
at their fair market value and any gain from the deemed sale would be subject to the rules described in the following paragraph. After
the deemed sale election, so long as we do not become a PFIC in a subsequent taxable year, the ordinary shares with respect to which such
election was made will not be treated as shares in a PFIC and will not be subject to the rules described below with respect to any “excess
distribution” the U. S. Holder receives from us or any gain from an actual sale or other disposition of such ordinary shares. U. S.
Holders are strongly urged to consult their tax advisors as to the possibility and consequences of making a deemed sale