Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 189

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 189
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 is treated as a recapitalization for U.S. federal income tax purposes. Alternatively, a cashless exercise
could be treated as a taxable exchange in which gain or loss would be recognized.

In either tax-free situation,
a U.S. Holder’s tax basis in the Class A Ordinary Shares received would generally equal the U.S. Holder’s tax
basis in the Warrants. If a cashless exercise is not treated as a realization event, it is unclear whether a U.S. Holder’s
holding period for the Class A Ordinary Shares received on exercise would be treated as commencing on the date of exercise of the
Warrants or the following day. If a cashless exercise is treated as a recapitalization, the holding period of the Class A Ordinary
Share received will include the holding period of the Warrant.

If a cashless exercise is
treated as a taxable exchange, a U.S. Holder could be deemed to have surrendered a portion of the Warrants to be exercised with an
aggregate fair market value equal to the exercise price for the remaining portion of the total number of warrants to be exercised. In
this case, the U.S. Holders would recognize gain or loss in an amount equal to the difference between the fair market value of the
Warrants deemed surrendered and the U.S. Holder’s tax basis in such warrants. A U.S. Holder’s tax basis in the Class A
Ordinary Shares received would equal the sum of the U.S. Holder’s initial investment in the portion of the Warrants deemed
to be exercised (i.e., the U.S. Holder’s purchase price for such Warrants (or the portion of such U.S. Holder’s
purchase price for units that is allocated to such Warrants)) and the exercise price of such Warrants. It is unclear whether a U.S. Holder’s
holding period for the Class A Ordinary Shares would commence on the date of exercise of the Warrants or the day following the
date of exercise of the Warrants. We expect a cashless exercise of Warrants to be treated as a recapitalization for U.S. federal
income tax purposes. However, there can be no assurance which, if any, of the alternative tax characterizations and holding periods described
above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax
consequences of a cashless exercise of Warrants.

Subject to the PFIC rules
described below, if