Company: BDRX
Filing Date: 2025-05-01
Form Type: DRS
Source: 0001214659-25-006756
Chunk: 132

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-01
Form: DRS
Chunk 132
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 Warrants, including the applicability of United States federal,
state and local tax laws and non-United States tax laws.

You are urged to consult your tax advisors about the application of the United States federal income tax rules to your particular circumstances as well as the state, local, non-United States and other tax consequences of the purchase, ownership and disposition of the Depositary Shares, the Pre-Funded Warrants, and the Series L Warrants.

Pre-Funded Warrants

Although it is
not entirely free from doubt, a Pre-Funded Warrant should be treated as the underlying Depositary Share, which generally will
be treated as a U.S. Holder owning the underlying Ordinary Share represented by such Depositary Share for U.S. federal income tax purposes
and a U.S. Holder of a Pre-Funded Warrant should generally be taxed in the same manner as a U.S. Holder of such an Depositary
Share, as described below. Accordingly, no gain or loss should be recognized (other than with respect to cash paid in lieu of a fractional
share) upon the exercise of a Pre-Funded Warrant and, upon exercise, the holding period of a Pre-Funded Warrant should
carry over to the Depositary Share received. Similarly, the tax basis of the Pre-Funded Warrant should carry over to the Depositary
Share received upon exercise, increased by the exercise price per Depositary Share. If a Pre-Funded Warrant expires without
being exercised, the U.S. Holder thereof should recognize a capital loss in an amount equal to such U.S. Holder’s tax basis in the Pre-Funded Warrant.
This loss will be long-term capital loss if, at the time of the expiration, the U.S. Holder’s holding period in the Pre-Funded Warrant
is longer than one year. The deductibility of capital losses is subject to limitations. In addition, a U.S. Holder may, in its discretion,
elect to undertake a cashless exercise of the Pre-Funded Warrants into Depositary Shares. The United States federal income tax
treatment of a cashless exercise of Pre-Funded Warrants into Depositary Shares is unclear, and the tax consequences of a cashless
exercise could differ from the consequences upon the exercise of a Pre-Funded Warrant described in this paragraph. U.S. Holders
should consult their own tax advisors regarding the U.S. federal income tax consequences of a cashless exercise of Pre-Funded Warrants.

However, characterizing