Company: BDRX
Filing Date: 2025-05-01
Form Type: DRS
Source: 0001214659-25-006756
Chunk: 138

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-01
Form: DRS
Chunk 138
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 credit.

Taxation of Dispositions of Depositary Shares or Pre-Funded Warrants. Subject to the discussion above under “—Passive Foreign Investment Company Considerations”, a U.S. Holder will recognize taxable gain or loss on any sale, exchange or other
taxable disposition of a Depositary Share or Pre-Funded Warrant equal to the difference between the amount realized (the amount
of cash (in U.S. dollars) plus the fair market value of any property received) for the Depositary Share or Pre-Funded Warrant
and such U.S. Holder’s tax basis (in U.S. dollars) in the Depositary Share or Pre-Funded Warrant (as applicable). The
gain or loss will generally be capital gain or loss. Such capital gain or loss generally will be long-term capital gain taxable at a reduced
rate for non-corporate U.S. Holders or long-term capital loss if, on the date of sale, exchange or other disposition, the Depositary
Shares or Pre-Funded Warrant (as applicable) were held by the U.S. Holder for more than one year. The deductibility of capital
losses is subject to limitations. Any such gain or loss generally will be treated as United States source income or loss for United States
foreign tax credit purposes.

Taxation of Series L Warrants

Exercise of Series L Warrants. A U.S. Holder should not recognize gain or loss on the exercise of a Series L Warrant and related receipt of an
Ordinary Share upon exercise of the warrant, or Warrant Share, (unless cash is received in lieu of the issuance of a fractional Warrant
Share). A U.S. Holder’s initial tax basis in the Warrant Share received on the exercise of a Series L Warrant should be equal to
the sum of (a) such U.S. Holder’s tax basis in such Series L Warrant, plus (b) the exercise price paid by such U.S. Holder
on the exercise of such Series L Warrant. It is unclear whether a U.S. Holder’s holding period for the Warrant Share received on
the exercise of a Series L Warrant would commence on the date of exercise of the Series L Warrant or the day following the date of exercise
of the Series L Warrant. If we are a PFIC, a U.S. Holder’s holding period for the Warrant Share for PFIC purposes will begin on
the date on which such U.S. Holder acquired its W