Company: LIMN
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001104659-25-003835
Chunk: 288

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 288
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 the SPAC Merger and such holder’s basis in the ParentCo warrants received would be equal to the holder’s basis in its Public Warrants exchanged. In addition, the holding period of the ParentCo warrants received in the SPAC Merger by such holder would include the period during which the surrendered Public Warrants were held on the date of the SPAC Merger.

If the SPAC Merger does not qualify as a tax-deferred reorganization under Section 368 of the Code, a holder of Public Warrants that does not also own our common stock would recognize gain or loss in an amount equal to the difference between the fair market value of the ParentCo warrants received and such holder’s tax basis in the Public Warrants exchanged. If the SPAC Merger does not so qualify (but the Business Combination transactions qualify as a tax-deferred transaction under Section 351 of the Code), a holder of Public Warrants holding our common stock generally would recognize gain, but not loss, equal to the lesser of (i) such stockholder’s “realized gain” from the exchange (generally the excess of the sum of the fair market value of the ParentCo Common Stock and ParentCo warrants received over such stockholder’s aggregate tax basis in our common stock and Public Warrants exchanged therefor), and (ii) the fair market value of the ParentCo warrants received. Any such gain would generally be long-term capital gain if the holder’s holding period for our common stock and Public Warrants (or just Public Warrants as the case may be) was more than one year at the time of the SPAC Merger, and the holder’s holding period in the ParentCo warrants would begin on the day following the exchange. In that case, the holder’s tax basis in the ParentCo warrants received in the exchange would be equal to the fair market value of such ParentCo warrants at the time of the SPAC Merger.

Taxation of Distributions . If our redemption of a U.S. holder’s shares of our common stock is treated as a distribution, as discussed above under the section entitled “ Redemption of Our Common Stock ,” and in the event of any future distributions with respect to ParentCo Common Stock (or deemed distributions), such distributions generally will constitute a dividend for U.S. federal income tax purposes to the extent paid from our (or ParentCo’s, as the case may be) current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of current and