Company: WELNF
Filing Date: 2025-11-12
Form Type: DEFM14A
Source: 0001104659-25-109577
Chunk: 333

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-11-12
Form: DEFM14A
Chunk 333
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 IWAC Ordinary Shares that elect to have their IWAC Ordinary Shares redeemed for cash and is subject in its entirety to the description of the “passive foreign investment company” or “PFIC” rules as discussed above under the section entitled “— Tax Consequences of the Domestication to U.S. Holders of IWAC Shares — U.S. Holders — PFIC Considerations. ” For purposes of this description, a “Converting U.S. Holder” is a U.S. Holder that so converts its IWAC Ordinary Shares into cash.

Except as described in the following paragraph and as described in the PFIC rules above, a Converting U.S. Holder generally will recognize capital gain or loss equal to the difference between the amount of cash received on the conversion and such shareholder’s adjusted basis in the IWAC Ordinary Shares exchanged if the conversion completely terminates the Converting U.S. Holder’s interest in IWAC (taking into account certain constructive ownership rules). A U.S. Holder’s adjusted tax basis in its IWAC Ordinary Shares will generally be equal to the cost of such IWAC Ordinary Shares. A U.S. Holder who purchased IWAC Ordinary Shares in the IPO generally will have a tax basis in the IWAC Ordinary Shares that were part of the units equal to the portion of the purchase price of such units allocated to the IWAC Ordinary Shares (such allocation based on the relative fair market value of the IWAC Ordinary Shares and the Warrants at the time). This gain or loss will be long-term capital gain or loss if the holding period of such IWAC Ordinary Shares is more than one year at the time of the exchange. It is possible that because of the conversion rights associated with the IWAC Ordinary Shares, the holding period of such shares may not be considered to begin until the date of such conversion (and thus it is possible that long-term capital gain or loss treatment may not apply). The deductibility of capital losses is subject to limitations. Shareholders who hold different blocks of IWAC Ordinary Shares (generally, shares of IWAC purchased or acquired on different dates or at different prices) should consult their tax advisors to determine how the above rules apply to them.

Cash received upon conversion that does not completely terminate the Converting U.S. Holder’s interest will still give rise to capital gain or loss, if the conversion is either (i) “substantially disproportionate” or (ii) “not essentially equivalent to a dividend.” In determining whether the conversion is substantially disproportionate or not essentially equivalent to a dividend with respect to