Company: BDRX
Filing Date: 2025-05-08
Form Type: POS AM
Source: 0001214659-25-007196
Chunk: 100

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-08
Form: POS AM
Chunk 100
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 are met, gain realized on the sale or other disposition of PFIC
shares would generally not be treated as capital gain. Instead, the U.S. holder would be treated as if the U.S. holder had realized such
gain ratably over the holder’s holding period for such securities. The amounts allocated to the taxable year of sale or other disposition
and to any year before the foreign corporation became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable
year would be subject to tax at the highest rate in effect for such year, together with an interest charge in respect of the tax attributable
to each such year. Similar rules apply to the extent any distribution in respect of PFIC shares exceeds 125% of the average annual distribution
on such PFIC securities received by the shareholder during the preceding three years or holding period, whichever is shorter. With certain
exceptions, a foreign corporation is treated as a PFIC with respect to a shareholder (or warrant holder, as applicable) if the corporation
was a PFIC with respect to such holder at any time during the holder’s holding period of the foreign corporation’s stock or
warrants. Dividends paid to with respect to shares of a PFIC are not eligible for the special tax rates applicable to qualified dividend
income of certain non-corporate holders. Instead, such dividend income is taxable at rates applicable to ordinary income.

If we were to be treated as
a PFIC, the tax consequences described above could be avoided by a “mark-to-market” election with respect to the Depositary
Shares. A U.S. holder making a “mark-to-market” election (assuming the requirements for such an election are satisfied) generally
would (i) be required to include as ordinary income the excess of the fair market value of the Depositary Shares on the last day of the
U.S. holder’s taxable year over the U.S. holder’s adjusted tax basis in such Depositary Shares and (ii) be allowed a deduction
in an amount equal to the lesser of (A) the excess, if any, of the U.S. holder’s adjusted tax basis in the Depositary Shares over
the fair market value of such Depositary Shares on the last day of the U.S. holder’s taxable year or (B) the excess, if any, of
the amount included in income because of the election for prior taxable years over the amount allowed as a deduction because of the election
for prior taxable years. In addition