Company: GSRF
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001213900-25-080052
Chunk: 260

Company: GSR IV Acquisition Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 260
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 prospectus may prevent a U.S. Holder from satisfying the applicable holding period requirements for this purpose. U.S. Holders should consult their tax advisors regarding the availability of the lower rate for any dividends paid with respect to our ordinary shares. Possible Constructive Distributions The terms of each right provide for an adjustment to the number of shares for which the right may be converted or to the exercise price of the right in certain events. An adjustment which has the effect of preventing dilution generally is not taxable. However, the U.S. Holders of the rights would be treated as receiving a constructive distribution from us if, for example, the adjustment increases the right holders’ proportionate interest in our assets or earnings and profits (e.g. through an increase in the number of ordinary shares that would be obtained upon exercise or through a decrease to the exercise price) as a result of a distribution of cash to the holders of our ordinary shares which is taxable to the holders of such ordinary shares as a distribution. Such constructive distribution would be subject to tax as if the U.S. Holders of the rights received a cash distribution from us equal to the fair market value of such increased interest. However, it is unclear whether a distribution treated as a dividend deemed paid to a non -corporateU.S. Holder would be eligible for the lower applicable long -termcapital gains rates as described above under “— Taxation of Distributions.” Taxation on the Disposition of Ordinary Shares and Rights Subject to the PFIC rules discussed below, upon a sale or other taxable disposition of our ordinary shares or rights which, in general, would include a redemption of ordinary shares as described below, and including as a result of a dissolution and liquidation in the event we do not consummate an initial business combination within the required time period, a U.S. Holder will generally recognize capital gain or loss. The amount of gain or loss recognized will generally be equal to the difference between (1) the sum of the amount of cash and the fair market value of any property received in such disposition (or, if the ordinary shares or public rights are held as part of units at the time of the disposition, the portion of the amount realized on such disposition that is allocated to the ordinary shares or public rights based upon the then fair market values of the ordinary shares and the public rights included in the units) and (2) the U.S. Holder’s adjusted tax basis in its ordinary shares or public rights so disposed of. A U.S. Holder’s adjusted tax basis in its ordinary