Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 72

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 72
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 account not only stock actually owned by the U.S. Holder, but
also shares of our stock that are constructively owned by it. A U.S. Holder may constructively own, in addition to stock owned directly,
stock owned by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such U.S.
Holder, as well as any stock the U.S. Holder has a right to acquire by exercise of an option, which would generally include which could
be acquired pursuant to the exercise of the Warrants. A redemption of a U.S. Holder’s stock will be substantially disproportionate
with respect to the U.S. Holder if the percentage of our outstanding voting stock actually and constructively owned by the U.S. Holder
immediately following the redemption of Common Stock is, among other requirements, less than 80% of the percentage of our outstanding
voting stock actually and constructively owned by the U.S. Holder immediately before the redemption. There will be a complete termination
of a U.S. Holder’s interest if either (1) all of the shares of our stock actually and constructively owned by the U.S. Holder
are redeemed or (2) all of the shares of our stock actually owned by the U.S. Holder are redeemed and the U.S. Holder is eligible
to waive, and effectively waives in accordance with specific rules, the attribution of stock owned by certain family members and the U.S.
Holder does not constructively own any other stock (including any stock constructively owned by the U.S. Holder as a result of owning
Warrants). The redemption of the Common Stock will not be essentially equivalent to a dividend if the redemption results in a “meaningful
reduction” of the U.S. Holder’s proportionate interest in us. Whether the redemption will result in a meaningful reduction
in a U.S. Holder’s proportionate interest in us will depend on the particular facts and circumstances. The IRS has indicated in
a published ruling that even a small reduction in the proportionate interest of a small minority stockholder in a publicly held corporation
who exercises no control over corporate affairs may constitute such a “meaningful reduction.” A U.S. Holder is urged to consult
its tax advisors as to the tax consequences of a redemption, including the application of the constructive ownership rules described
above.

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If none
of the foregoing tests is satisfied, the redemption will be treated as a corporate distribution, the tax consequences of which