Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 196

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 196
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 such U.S. Holder elects in accordance with applicable Treasury Regulations to include in income as a deemed dividend deemed paid by GigCapital7 the “all earnings and profits” amount (as defined in the Treasury Regulations under Section 367 of the Code) attributable to such U.S. Holder’s GigCapital7 Class A Ordinary Shares; and |

| • |     | a U.S. Holder whose GigCapital7 Class A Ordinary Shares have a fair market value of less than $50,000 on the date of the Domestication and who, on the date of the Domestication, is not a 10% U.S. |

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| Shareholder, generally will not recognize any gain or loss or include any part of GigCapital7’s earnings and profits in income under Section 367 of the Code in connection with the Domestication. |

**Additionally, even if the Domestication qualifies as an F Reorganization, proposed Treasury Regulations promulgated under Section 1291(f) of the Code and certain other PFIC rules (which have retroactive effective dates) generally require that a U.S. person who disposes of stock of a PFIC (including for this purpose, under a proposed Treasury Regulation that generally treats an “option” to acquire the stock of a PFIC as stock of the PFIC, exchanging GigCapital7 Warrants for Domesticated GigCapital7 Warrants in the Domestication) must recognize gain equal to the excess of the fair market value of such PFIC stock over its adjusted tax basis, notwithstanding any other provision of the Code. GigCapital7 believes that it is likely classified as a PFIC for U.S. federal income tax purposes. As a result, these proposed Treasury Regulations, if finalized in their current form, would generally require a U.S. Holder of GigCapital7 Class A Ordinary Shares to recognize gain under the PFIC rules on the exchange of GigCapital7 Class A Ordinary Shares for Domesticated GigCapital7 Common Stock pursuant to the Domestication unless such U.S. Holder has made certain tax elections with respect to such U.S. Holder’s GigCapital7 Class A Ordinary Shares. In addition, the proposed Treasury Regulations provide coordinating rules with other sections of the Code, including Section 367(b), which affect the manner in which the rules under such other sections apply to transfers of PFIC stock. These proposed Treasury Regulations, if finalized in their current form, would also apply to a U.S. Holder who exchanges GigCapital7 Warrants for Domesticated GigCapital7 Warrants; under current law,