Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 346

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 346
---
 an individual, because TLGY is no longer listed on Nasdaq and because there is a substantial likelihood that TLGY is and has been a PFIC (as further discussed below), no assurance can be given that dividends from TLGY received in connection with the Redemption will qualify as “qualified dividend income” eligible for being taxed at the lower rate applicable to long -termcapital gains, and such dividends may be taxed as ordinary income. U.S. Holders should consult their own tax advisors regarding the availability of the lower rate for any dividends deemed paid in connection with the Redemption. Passive Foreign Investment Company Rules A foreign (i.e., non -U.S.) corporation generally will be classified as a “passive foreign investment company” (“ PFIC”) for U.S. federal income tax purposes with respect to a taxable year of the foreign corporation if: (i) 75% or more of its gross income in a taxable year consists of passive income; or (ii) at least 50% of its assets in a taxable year, ordinarily determined based on fair market value (but which may be determined by reference to tax basis of assets, in some instances) and ordinarily averaged quarterly over the year, are assets (including cash) that produce, or are held for the production of, passive income. For purposes of these calculations, if the corporation directly or indirectly owns at least 25% of the shares by value of another corporation, then it is treated as if it received directly its proportionate share of the income of such other corporation, and held its proportionate share of the assets of such other corporation. Passive income generally includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets. Because TLGY’s assets have consisted predominantly of cash prior to the Redemption, there is a substantial likelihood that TLGY is and has been a PFIC. If TLGY is or has been a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of TLGY Ordinary Shares or TLGY Warrants and, in the case of TLGY Ordinary Shares, the U.S. Holder did not make either (1) a timely qualified electing fund (“ QEF”) election for TLGY’s first taxable year as a PFIC in 151 which the U.S. Holder held (or was deemed to hold) TLGY Ordinary Shares (or a QEF election along with a purging election), or