Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 75

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 75
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 of section 1297 of the Code for any taxable year during which a U.S. Holder holds Class A Ordinary Shares
or Warrants, certain adverse U.S. federal income tax consequences may apply to such U.S. Holder. A non-U.S. corporation
will generally be a PFIC for U.S. federal income tax purposes if, in any taxable year, either (1) at least 75% of its gross
income for such year is passive income (such as interest, dividends, rents and royalties (other than rents or royalties derived from
the active conduct of a trade or business) and net gains from the disposition of assets giving rise to passive income) or (2) at
least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is attributable to
assets that produce or are held for the production of passive income.

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Based on the current and
anticipated value of the assets and the composition of the income and assets, including goodwill and other unbooked intangibles, of us
and our subsidiaries, we do not currently expect to be a PFIC for the taxable year ending December 31, 2025 or foreseeable future taxable years.
However, this conclusion is a factual determination that must be made annually at the close of each taxable year on the basis of the
composition of the income and assets of us and our subsidiaries and, thus, is subject to change. Accordingly, there can be no assurance
that we or any of our subsidiaries will not be a PFIC for any taxable year.

For a more detailed discussion
of the PFIC rules and the risks and adverse tax consequences of PFIC classification to U.S. Holders of the Class A Ordinary
Shares or Warrants, see “Taxation”

Our issuance of
additional share capital in connection with financings, acquisitions, investments, our equity incentive plans or otherwise will dilute
all other shareholders.

We expect to issue additional
share capital in the future that will result in dilution to all other shareholders. We expect to grant equity awards to key employees
under our equity incentive plan. We may also raise capital through equity financings or equity-linked in the future. As part of our business
strategy, we may acquire or make investments in companies, solutions or technologies and issue equity securities to pay for any such
acquisition or investment. Any such issuances of additional share capital may cause shareholders to experience significant dil