Company: ARTL
Filing Date: 2025-11-17
Form Type: S-1
Source: 0001640334-25-002154
Chunk: 41

Company: ARTELO BIOSCIENCES, INC.
Filing Date: 2025-11-17
Form: S-1
Chunk 41
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 individual non-U.S. holder described in the second bullet above, you will be subject to tax at 30% (or such lower rate specified by an applicable income tax treaty) on the gain derived from the sale, which gain may be offset by U.S. source capital losses for the year (provided you have timely filed U.S. federal income tax returns with respect to such losses). You should consult any applicable income tax or other treaties that may provide for different rules.

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Warrants

Exercise of Warrants. In general, a non-U.S. holder will not recognize gain or loss for U.S. federal income tax purposes upon exercise of a warrant, except to the extent the non-U.S. holder receives a cash payment for any such fractional share that would otherwise have been issuable upon exercise of the warrant, which will be treated as a sale subject to the rules described above for “—Gain on Disposition of Convertible Notes or Warrants.” A non-U.S. holder’s initial tax basis in the share of Common Stock received upon exercise of a warrant should be equal to the sum of (i) the non-U.S. holder’s tax basis in the warrant (that is, an amount equal to the purchase price of the warrant) plus (ii) the exercise price paid by the non-U.S. holder on the exercise of the warrant. A non-U.S. holder’s holding period for shares of Common Stock received on exercise of a warrant will commence on the date following the date of exercise of the warrant and will not include the period during which the non-U.S. holder held the warrant.

In certain limited circumstances, a non-U.S. holder may be permitted to undertake a cashless exercise of warrants into our Common Stock. The U.S. federal income tax treatment of a cashless exercise of warrants into our Common Stock is unclear, and the tax consequences of a cashless exercise could differ from the consequences upon the exercise of a warrant described in the preceding paragraph. Non-U.S. holders should consult their own tax advisors regarding the U.S. federal income tax consequences of a cashless exercise of warrants.

Expiration of Warrants. Expiration of warrants will be treated as if the non-U.S. holder sold or exchanged the warrant, as applicable, and recognized a capital loss equal to the non-U.S. holder’s tax basis in such warrant. However, a non-U.S. holder will not be able to utilize a loss recognized upon expiration of a warrant against the non-U.S. holder’s U.S