Company: NKLR
Filing Date: 2025-09-11
Form Type: S-4/A
Source: 0001213900-25-086741
Chunk: 234

Company: Terra Innovatum Global N.V.
Filing Date: 2025-09-11
Form: S-4/A
Chunk 234
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 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 the total voting power or total value of the stock of PubCo immediately after the completion of the Merger will be required to recognize gain (but not loss) as a result of the Merger unless the U.S. holder enters into a “gain recognition agreement” (as defined in the Treasury Regulations) with the IRS. All U.S. holders are urged to consult their own tax advisors regarding the decision to file a gain recognition agreement and the procedures to be followed in connection with such a filing. U.S. Federal Income Tax Consequences of the Business Combination to Terra Quotaholders Excluded Terra Innovatum does not have any U.S. holders who hold less than 5% Terra Innovatum quotas by vote or value. Given that Terra Innovatum is a non -U.S. entity with no U.S. holders who hold less than 5% Terra Innovatum quotas by vote or value, and given that this discussion does not address tax considerations applicable to investors that own (directly, indirectly or by attribution) 5% or more of Terra Innovatum quotas, Terra Innovatum has excluded discussions on the “U.S. Federal Income Tax Consequences of the Business Combination to Terra Quotaholders.” Moreover, as Terra Innovatum is a non -U.S. entity Terra Innovatum and is not subject to U.S. federal income taxes