Company: TACOW
Filing Date: 2025-04-15
Form Type: S-1/A
Source: 0001829126-25-002650
Chunk: 283

Company: Berto Acquisition Corp.
Filing Date: 2025-04-15
Form: S-1/A
Chunk 283
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 Distributions

The terms of each warrant provide
for an adjustment to the number of ordinary shares for which the warrant may be exercised or to the exercise price of the warrant in
certain events, as discussed in the section of this prospectus entitled “Description of Securities — Warrants — Public Shareholders’ Warrants.” An adjustment which has the effect of preventing dilution generally is not taxable. The
U.S. Holders of the warrants would, however, be treated as receiving a constructive distribution from us if, for example, the adjustment
increases such U.S. Holders’ proportionate interest in our assets or earnings and profits (for example, through an increase in
the number of ordinary shares that would be obtained upon exercise or through a decrease in the exercise price of the warrants), which
adjustment may be made as a result of a distribution of cash or other property to the holders of our ordinary shares. Such constructive
distribution to a U.S. Holder of warrants would be treated for United States federal income tax purposes as if such U.S. Holder had received
a cash distribution from us generally equal to the fair market value of such increased interest (taxed as described above under “—
Taxation of Distributions”).

<div align='center'>187</div>

Passive Foreign Investment Company Rules

A foreign corporation (that is,
non-U.S. entity treated as a corporation for U.S. federal income tax purposes) will be classified as a PFIC for United States federal
income tax purposes if either (i) at least 75% of its gross income in a taxable year, including its pro ratashare of the gross
income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income (the “income
test”) or (ii) at least 50% of its assets in a taxable year (ordinarily determined based on fair market value and averaged quarterly
over the year), including its pro ratashare of the assets of any corporation in which it is considered to own at least 25% of
the shares by value, are held for the production of, or produce, passive income (the “asset test”). Passive income generally
includes, among other things, 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 assets giving rise to passive income.

Because we are a blank check
company, with no current