Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 390

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 390
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 over corporate affairs may constitute such a “meaningful reduction”. If none of the foregoing tests are satisfied, then the redemption of shares will be treated as a corporate distribution to the redeemed U.S. Holder and the tax effects to such a U.S. Holder will be as described below under the section entitled “ —2. Taxation of Redemption Treated as a Distribution”. After the application of those rules, any remaining tax basis of the U.S. Holder in the redeemed shares will be added to the U.S. Holder’s adjusted tax basis in its remaining GigCapital7 shares or, if it has none, to the U.S. Holder’s adjusted tax basis in its Public Warrants or possibly in other GigCapital7 shares constructively owned by it. Redeeming U.S. Holders generally will be subject to the PFIC rules relating to the excess distribution regime, QEF Election and MTM Election described above under the section entitled “ —A. Tax Effects of the Domestication to U.S. Holders— 5. PFIC Considerations” with respect to any gain or loss recognized by the U.S. Holder on its deemed sale of its GigCapital7 Class A Ordinary Shares (if the redemption were treated as a sale of shares) or any corporate distributions deemed received on its GigCapital7 Class A Ordinary Shares (if the redemption were treated as a corporate distribution) without regard to any potential limitations or other interactions of such PFIC rules in connection with an F Reorganization or Section 367 of the Code as discussed therein. U.S. Holders who actually or constructively own at least five percent (5%) by vote or value (or, if GigCapital7 Class A Ordinary Shares is not then publicly traded, at least one percent (1%) (by vote or value)) or more of the total outstanding GigCapital7 shares may be subject to special reporting requirements with respect to a redemption of shares, and such holders should consult with their tax advisors with respect to their reporting requirements.

| 2. | Taxation of Redemption Treated as a Distribution |

If the redemption of a U.S. Holder’s shares is treated as a corporate distribution, as discussed above under the section entitled “ —1. Generally”, the amount of cash received in the redemption generally will constitute a dividend for U.S. federal income tax purposes to the extent paid from GigCapital7’s current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of GigCapital7’s current and accumulated earnings and profits will