Company: CNTB
Filing Date: 2025-06-10
Form Type: F-3
Source: 0001193125-25-138482
Chunk: 128

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-06-10
Form: F-3
Chunk 128
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 regarding the applicability of the PFIC rules to any of our subsidiaries. A U.S. Holder of “marketable stock” (as defined below) in a PFIC may make a mark-to-marketelection for such stock to elect out of the PFIC rules described above regarding excess distributions and recognized gains. If you make a valid mark-to-marketelection for the ADSs or Ordinary Shares, you will include in income for each year that we are a PFIC an amount equal to the excess, if any, of the fair market value of the ADSs or Ordinary Shares as of the close of your taxable year over your adjusted basis in such ADSs or Ordinary Shares. You will be allowed a deduction for the excess, if any, of the adjusted basis of the ADSs or Ordinary Shares over their fair market value as of the close of the taxable year. However, deductions are allowable only to the extent of any net mark-to-marketgains on the ADSs or Ordinary Shares included in your income for prior taxable years. Amounts included in your income under a mark-to-marketelection, as well as gain on the actual sale or other taxable disposition of the ADSs or Ordinary Shares will be treated as ordinary income. Ordinary loss treatment will also apply to the deductible portion of any mark-to-marketloss on the ADSs or Ordinary Shares, as well as to any loss realized on the actual sale or other taxable disposition of the ADSs or Ordinary Shares, to the extent that the amount of such loss does not exceed the net mark-to-marketgains previously included for such ADSs or Ordinary Shares. Your basis in the ADSs or Ordinary Shares will be adjusted to reflect any such income or loss amounts. If you make a mark-to-marketelection, any distributions that we make would generally be subject to the tax rules discussed above under “—Taxation of Dividends and Other Distributions on the ADSs or Ordinary Shares,” except that the lower rate applicable to qualified dividend income (discussed above) would not apply. The mark-to-marketelection is available only for “marketable stock,” which is stock that is traded in other than de minimisquantities on at least 15 days during each calendar quarter (“regularly traded”) on a qualified exchange or other market, as defined in the applicable U.S. Treasury regulations. Nasdaq is a qualified exchange. 44

Our ADSs (but not our Ordinary Shares) are currently be listed on Nasdaq and, consequently, if you are a holder of ADSs