Company: NKLR
Filing Date: 2025-09-16
Form Type: 424B3
Source: 0001213900-25-087981
Chunk: 230

Company: Terra Innovatum Global N.V.
Filing Date: 2025-09-16
Form: 424B3
Chunk 230
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 For example, the requirements for reorganization treatment could be affected by the magnitude of redemptions of GSR III Class A Ordinary Shares that occur in connection with the Merger. There can be no assurance that the Merger qualifies as a reorganization under Section 368 of the Code and because of the significant degree of uncertainty regarding whether the Merger can qualify as a reorganization under Section 368 of the Code, counsel is unable to opine as to whether it does, and it may be prudent for investors to assume that it will not. U.S. holders should consult their tax advisers regarding the potential qualification of the Merger as a reorganization for U.S. federal income tax purposes. The remainder of this discussion assumes that the Terra Pre -ClosingRestructuring and the Merger, taken together with other relevant transactions, should qualify as exchanges described in Section 351 of the Code. U.S. holders should consult their tax advisers regarding the characterization of the Transactions for U.S. federal income tax purposes. U.S. holders exchanging GSR III Class A Ordinary Shares for PubCo Ordinary Shares A U.S. holder that exchanges GSR III Class A Ordinary Shares in the Merger for PubCo Ordinary Shares generally should not recognize any gain or loss on such exchange. In such case, the aggregate adjusted tax basis of the PubCo Ordinary Shares received in the Merger by a U.S. holder should be equal to the adjusted tax basis of GSR III Class A Ordinary Shares surrendered in the Merger in exchange therefor. The holding period of the PubCo Ordinary Shares should include the holding period of GSR III Class A Ordinary Shares surrendered in the Merger in exchange therefor. 96 Section 367(a) This discussion is subject to the discussion under “ — Passive Foreign Investment Company Rules” below. Section 367(a) of the Code and the Treasury Regulations promulgated thereunder impose certain additional requirements for qualifying under Sections 351 or Section 368 of the Code with respect to transactions where a U.S. person transfers stock or securities to a non -U.S. corporation in exchange for stock or securities in a non -U.S. corporation. U.S. holders of GSR III Class A Ordinary Shares will be deemed to transfer shares of such stock to PubCo in exchange for PubCo Ordinary Shares, so that these requirements will apply. Under applicable Treasury Regulations under Section 367(a) of the Code, a U.S. holder who owns (directly, indirectly, or by attribution) 5% or more of