Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 299

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 299
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Tech Common Stock if the redemption (i) results
in a “complete termination” of the U.S. holder’s interest in FutureTech, (ii) is “substantially disproportionate”
with respect to the U.S. holder or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. holder. These
tests are explained more fully below.

In determining
whether any of the foregoing tests are satisfied, a U.S. holder generally must take into account not only shares of FutureTech Common
Stock actually owned by such U.S. holder, but also shares of FutureTech Common Stock such U.S. holder is treated as constructively owning.
A U.S. holder may be treated as constructively owning shares of FutureTech Common Stock owned by certain related individuals and entities
in which the U.S. holder has an interest or that have an interest in such U.S. holder, as well as any shares the U.S. holder has a right
to acquire by exercise of an option, such as the FutureTech Public Warrants or FutureTech Warrants.

There will be
a complete termination of a U.S. holder’s interest if either (i) all of the shares of FutureTech Common Stock actually and constructively
owned by the U.S. holder are redeemed or (ii) all of the shares of FutureTech Common Stock actually owned by the U.S. holder are redeemed
and the U.S. holder is eligible to waive, and effectively waives in accordance with specific rules, the attribution of shares owned by
certain family members and the U.S. holder does not constructively own any other shares. In order to meet the “substantially disproportionate”
test, the percentage of outstanding voting stock of FutureTech actually or constructively owned by a U.S. holder immediately following
the redemption generally must be less than 80% of the voting stock of FutureTech actually or constructively owned by such U.S. holder
immediately prior to the redemption. The redemption of the shares of FutureTech Common Stock will not be essentially equivalent to a dividend
if a U.S. holder’s redemption results in a “meaningful reduction” of the U.S. holder’s proportionate interest
in FutureTech. Whether the redemption will result in a meaningful reduction in a U.S. holder’s proportionate interest in FutureTech
will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction
in the proportionate interest of