Company: TGE
Filing Date: 2025-04-25
Form Type: F-4/A
Source: 0001213900-25-035536
Chunk: 392

Company: Generation Essentials Group
Filing Date: 2025-04-25
Form: F-4/A
Chunk 392
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 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. Alternatively, a cashless exercise could be treated as a taxable exchange in which gain or loss would be recognized. In either tax -freesituation, a U.S. Holder’s tax basis in the TGE Class A Ordinary Shares received would generally equal the U.S. Holder’s tax basis in the TGE Warrants. If a cashless exercise is not treated as a realization event, it is unclear whether a U.S. Holder’s holding period for the TGE Class A Ordinary Shares received on exercise would be treated as commencing on the date of exercise of the TGE Warrants or the following day. If a cashless exercise is treated as a recapitalization, the holding period of the TGE Class A Ordinary Share received will include the holding period of the TGE Warrant. If a cashless exercise is treated as a taxable exchange, a U.S. Holder could be deemed to have surrendered a portion of the TGE Warrants to be exercised with an aggregate fair market value equal to the exercise price for the remaining portion of the total number of warrants to be exercised. In this case, the U.S. Holders would recognize gain or loss in an amount equal to the difference between the fair market value of the TGE Warrants deemed surrendered and the U.S. Holder’s tax basis in such warrants. A U.S. Holder’s tax basis in the TGE Class A Ordinary Shares received would equal the sum of the U.S. Holder’s initial investment in the portion of the TGE Warrants deemed to be exercised (i.e., the U.S. Holder’s purchase price for such TGE Warrants (or the portion of such U.S. Holder’s purchase price for units that is allocated to such TGE Warrants)) and the exercise price of such TGE Warrants. It is unclear whether a U.S. Holder’s holding period for the TGE Class A Ordinary Shares would commence on the date of exercise of the TGE Warrants or the day following the date of exercise of the TGE Warrants. We expect a cashless exercise of TGE Warrants (including after TGE provides notice of its intent to redeem TGE Warrants for cash) to be treated as a recapitalization for U.S. federal income tax purposes. However, there can be no assurance which, if any, of the alternative tax characterizations and holding periods described above