Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 395

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 395
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ated GigCapital7 Warrants exercised therefor. 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 a number of Domesticated GigCapital7 Warrants equal to the number of shares of Domesticated GigCapital7 Common Stock having a value equal to the exercise price for the total number of Domesticated GigCapital7 Warrants to be exercised. In such case, the U.S. Holder would recognize capital gain or loss with respect to the Domesticated GigCapital7 Warrants deemed surrendered in an amount equal to the difference between the fair market value of the Domesticated GigCapital7 Common Stock that would have been received in a regular exercise of the Domesticated GigCapital7 Warrants deemed surrendered and the U.S. Holder’s tax basis in the Domesticated GigCapital7 Warrants deemed surrendered. In this case, a U.S. Holder’s aggregate tax basis in the Domesticated GigCapital7 Common Stock received would equal the sum of the U.S. Holder’s tax basis in the Domesticated GigCapital7 Warrants deemed exercised and the aggregate exercise price of such Domesticated GigCapital7 Warrants. It is unclear whether a U.S. Holder’s holding period for the Domesticated GigCapital7 Common Stock would commence on the date following the date of exercise or on the date of exercise of the Domesticated GigCapital7 Warrants; in either case, the holding period would not include the period during which the U.S. Holder held the Domesticated GigCapital7 Warrants. Due to the absence of authority on the U.S. federal income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with respect to the Domesticated GigCapital7 Common Stock received, there can be no assurance regarding 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. If Domesticated GigCapital7 redeems Domesticated GigCapital7 Warrants for cash or if it purchases Domesticated GigCapital7 Warrants in an open market transaction, such redemption or purchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as described above under the section entitled “ —2. Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Domesticated