Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 379

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 379
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all earnings and profits amount” in income as a deemed dividend deemed paid by GigCapital7 under Treasury Regulations under Section 367 of the Code as a result of the Domestication.

| b. | U.S. Holders Who Own Less Than 10% (By Vote or Value) of GigCapital7 Shares |

Subject to the discussion below under the section entitled “ —5. PFIC Considerations”, a U.S. Holder who, on the date of the Domestication, is not a 10% U.S. Shareholder and whose GigCapital7 Class A Ordinary Shares have a fair market value of $50,000 or more on the date of the Domestication will recognize gain (but not loss) with respect to its GigCapital7 Class A Ordinary Shares in the Domestication or, in the alternative, may elect to recognize the “all earnings and profits” amount attributable to such U.S. Holder’s GigCapital7 Class A Ordinary Shares as described below. Subject to the discussion below under the section entitled “— 5. PFIC Considerations”, unless a U.S. Holder makes the “all earnings and profits election” as described below, such U.S. Holder generally must recognize gain (but not loss) with respect to Domesticated GigCapital7 Common Stock received in the Domestication in an amount equal to the excess of the fair market value of such Domesticated GigCapital7 Common Stock over the U.S. Holder’s adjusted tax basis in the GigCapital7 Class A Ordinary Shares deemed surrendered in exchange therefor. U.S. Holders who hold different blocks of GigCapital7 Class A Ordinary Shares (generally, GigCapital7 Class A Ordinary Shares purchased or acquired on different dates or at different prices) should consult their tax advisors to determine how the above rules apply to them. In lieu of recognizing any gain as described in the preceding paragraph, a U.S. Holder may elect to include in income as a deemed dividend deemed paid by GigCapital7 the “all earnings and profits amount” attributable to its GigCapital7 Class A Ordinary Shares under Section 367(b) of the Code. There are, however, strict conditions for making this election. This election must comply with applicable Treasury Regulations and generally must include, among other things:

| (i) | a statement that the Domestication is a Section 367(b) exchange (within the meaning of the applicable Treasury Regulations); |

| (ii) | a complete description of the Domestication; |

| (iii) | a description of any stock, securities or