Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 386

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 386
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ging election subject to the excess distribution regime described above. As a result of any such purging election, the U.S. Holder would increase the adjusted tax basis in its GigCapital7 Class A Ordinary Shares by the amount of the gain recognized and, solely for purposes of the PFIC rules, would have a new holding period in its GigCapital7 Class A Ordinary Shares. U.S. Holders are urged to consult their tax advisors as to the application of the rules governing purging elections to their particular circumstances. A U.S. Holder’s ability to make a timely and effective QEF Election (or a QEF Election along with a purging election) with respect to its GigCapital7 Class A Ordinary Shares is contingent upon, among other things, the provision by GigCapital7 of a “PFIC Annual Information Statement” to such U.S. Holder. If we determine we are a PFIC for any taxable year, upon written request, we will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC Annual Information Statement, in order to enable the U.S. Holder to make and maintain a QEF election, but there is no assurance that we will timely provide such required information. As discussed above, a U.S. Holder is not able to make a QEF Election with respect to Public Warrants under current law. An Electing Shareholder generally would not be subject to the excess distribution regime discussed above with respect to their GigCapital7 Class A Ordinary Shares. As a result, an Electing Shareholder generally is not expected to recognize gain or loss as a result of the Domestication except to the extent described under “ —3. Effects of Section 367 to U.S. Holders of GigCapital7 Class A Ordinary Shares”, and subject to the discussion above under “ —A. Tax Effects of the Domestication to U.S. Holders”, but rather would include annually in gross income its pro rata share of the ordinary earnings and net capital gain of GigCapital7, whether or not such amounts are actually distributed. The impact of the PFIC rules on a U.S. Holder of GigCapital7 Class A Ordinary Shares may also depend on whether the U.S. Holder has made a mark-to-marketelection under Section 1296 of the Code (an “ MTM Election”). U.S. Holders who hold (actually or constructively) stock of a foreign corporation that is classified as a PFIC may elect to mark such stock to its market value each taxable year