Company: TGE
Filing Date: 2025-11-21
Form Type: POS AM
Source: 0001213900-25-113604
Chunk: 190

Company: Generation Essentials Group
Filing Date: 2025-11-21
Form: POS AM
Chunk 190
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 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 Warrants deemed surrendered and the U.S. Holder’s tax basis in such warrants. A U.S. Holder’s tax basis in
the Class A Ordinary Shares received would equal the sum of the U.S. Holder’s initial investment in the portion of the
Warrants deemed to be exercised (i.e., the U.S. Holder’s purchase price for such Warrants (or the portion of such U.S. Holder’s
purchase price for units that is allocated to such Warrants)) and the exercise price of such Warrants. It is unclear whether a U.S. Holder’s
holding period for the Class A Ordinary Shares would commence on the date of exercise of the Warrants or the day following
the date of exercise of the Warrants. We expect a cashless exercise of Warrants 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 would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax
consequences of a cashless exercise of Warrants.

Subject to the PFIC rules
described below, if we redeem Warrants for cash pursuant to the redemption provisions of the Warrants or purchase Warrants in an open
market transaction, such redemption or purchase will generally be treated as a taxable disposition of such Warrants by the U.S. Holder,
taxed as described above under “—Taxation on the Disposition of the Securities.”

PFIC Considerations

Definition of a
PFIC

A foreign (i.e., non-U.S.)
corporation will be a PFIC for U.S. federal income tax purposes if at least 75% of its gross income in a taxable year of the foreign
corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the
shares by value (a “Look-Through Subsidiary”), is passive income. Alternatively, a foreign corporation will be a PFIC if
at least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged
quarterly over