Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 289

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 289
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-Funded
Warrant provide for an adjustment to the number of common shares for which the Pre-Funded Warrant may be exercised or to the exercise
price of the Series A Warrant in certain events, as described above under “-Pre-Funded Warrants - Duration, Exercise Price and Form”.
Under Section 305 of the Code, an adjustment to the number of common shares that will be issued on the exercise of the Pre-Funded Warrants,
or an adjustment to the exercise price of the Pre-Funded Warrants, may be treated as a constructive distribution to a U.S. holder of the
Pre-Funded Warrants if, and to the extent that, such adjustment has the effect of increasing such U.S. holder’s proportionate interest
in the “earnings and profits” or our assets, depending on the circumstances of such adjustment (for example, if such adjustment
is to compensate for a distribution of cash or other property to shareholders). Adjustments to the exercise price of Pre-Funded Warrants
made pursuant to a bona fide reasonable adjustment formula that has the effect of preventing dilution of the interest of the holders of
the Pre-Funded Warrants should generally not be considered to result in a constructive distribution. Any such constructive distribution
would be taxable whether or not there is an actual distribution of cash or other property and would be treated as if such U.S. holder
had received a cash distribution from the Company generally equal to the fair market value of such increased interest (taxed as described
below under “-Dividends on Common Shares”). U.S. holders should consult their own tax advisors regarding the application of
these rules in light of their particular circumstances.

U.S. Federal Income Taxation of U.S. Holders of Company Series A Warrants and Common Shares

No statutory, administrative,
or judicial authority directly addresses the treatment of the Series A Warrants or any instrument similar to Series A Warrants for U.S.
federal income tax purposes, in particular under (or a result of) the alternate cashless exercise option of the Series A Warrants, and,
therefore, such treatment is not clear. The discussion below, to the extent it pertains to Series A Warrants, assumes that the Series
A Warrants are treated as in the nature of an option for U.S. federal income tax purposes. However, there can be no assurance that the
IRS or a court will treat the Series A Warrants as in the nature of an option. No discussion is