Company: LIMN
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001104659-25-003835
Chunk: 291

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 291
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 exercise were treated as a recapitalization, the holding period of the ParentCo Common Stock would include the holder’s holding period for the ParentCo warrant.

It is also possible that a cashless exercise could be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. holder could be deemed to have surrendered warrants having a value equal to the exercise price for the total number of ParentCo warrants to be exercised. The U.S. holder would recognize capital gain or loss in an amount equal to the difference between the fair market value of the shares of ParentCo Common Stock represented by the ParentCo warrants deemed surrendered and the U.S. Holder’s tax basis in the ParentCo warrants deemed surrendered. In this case, a U.S. Holder’s tax basis in the ParentCo Common Stock received would equal the fair market value of the shares of ParentCo Common Stock represented by the ParentCo warrants deemed surrendered. A U.S. Holder’s holding period for the ParentCo Common Stock would commence on the day following the date of exercise (or possibly the date of exercise) of the ParentCo warrant.

Due to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, there can be no assurance which, if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. holders should consult their tax advisors regarding the tax consequences of a cashless exercise.

Adjustment to Exercise Price . Under Section 305 of the Code, if certain adjustments are made (or not made) to the number of shares of ParentCo Common Stock to be issued upon the exercise of a warrant or to the warrant’s exercise price, a U.S. holder may be deemed to have received a constructive distribution with respect to the ParentCo warrant, which could result in adverse consequences for the U.S. holder, including the inclusion of dividend income. These rules governing constructive distributions are complex and U.S. holders should consult their tax advisors on the tax consequences of any such constructive distribution.

#### Non-U.S. Holders
This section applies to you if you are a “Non-U.S. holder.” A Non-U.S. holder is a beneficial owner of our common stock or Public Warrants, or ParentCo Common Stock or ParentCo warrants, that is, for U.S. federal income tax purposes:

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a non-resident alien individual, other than certain former citizens and residents of the United States subject to U.S