Company: BDRX
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001214659-25-007340
Chunk: 104

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-12
Form: 424B3
Chunk 104
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. Subject to the PFIC rules discussed above, any such gain or loss generally will
be a capital gain or loss, which will be long-term capital gain or loss if the warrant is held for more than one year. Deductions for
capital losses are subject to complex limitations under the Code.

Expiration of Warrants Without Exercise. Upon the lapse or expiration of a warrant, a U.S. Holder will recognize a loss in an amount equal to such U.S. Holder’s
tax basis in the warrant. Any such loss generally will be a capital loss and will be long-term capital loss if the warrants are held for
more than one year. Deductions for capital losses are subject to complex limitations under the Code.

Certain Adjustments to Warrants. Under Section 305 of the Code, an adjustment to the number of Warrant Shares that will be issued on the exercise of
the warrants, or an adjustment to the exercise price of the warrants, may be treated as a constructive distribution to a U.S. Holder of
the warrants if, and to the extent that, such adjustment has the effect of increasing such U.S. Holder’s proportionate interest
in the “earnings and profits” or our assets, depending on the circumstances of such adjustment (for example, if such adjustment
is to compensate for a distribution of cash or other property to the shareholders). Adjustments to the exercise price of warrants made
pursuant to a bona fide reasonable adjustment formula that has the effect of preventing dilution of the interest of the
holders of warrants should generally not be considered to result in a constructive distribution. Any such constructive distribution would
be taxable whether or not there is an actual distribution of cash or other property. (See above for a more detailed discussion of the
rules applicable to distributions made by us in the section entitled “Dividends and Other Distributions on the Depositary Shares”).

Disposition of Foreign Currency

U.S. Holders are urged to consult their tax advisors
regarding the tax consequences of receiving, converting or disposing of any non-U.S. currency received as dividends on our Depositary
Shares or warrants or on the sale or retirement of a Depositary Share or warrant.

Tax on Net Investment Income

An additional 3.8% Medicare
tax may be imposed on some or all of such U.S. Holder’s “net investment income.” Net investment income generally includes
income from the Depositary Shares unless such income is derived in the ordinary course of the conduct of a trade or business (other